Shymkent businesses fight to unlock millions in wrongful tax charges

Entrepreneurs in Shymkent have spent months battling to reclaim millions in wrongful tax charges. Over 2,500 businesses were hit with unjustified bills for outdoor advertising, later ruled illegal. Despite regulators cancelling the assessments, most of the money remains frozen in the tax system. The trouble began when the city’s Architecture and Urban Planning Department issued additional tax assessments with penalties. Businesses received no prior warning and had no opportunity to challenge the calculations. Many were charged for what officials called 'advertising', though the signs in question were simple informational displays.

One case involved individual entrepreneur Sultanhodzhaev, who was billed nearly 560,000 tenge for supposedly placing outdoor advertisements. An investigation later confirmed these were ordinary business signs, not ads. Regulators eventually scrapped hundreds of millions in assessments after finding systemic violations in the process.

Yet even after the cancellations, the funds stayed locked in offset procedures. By early May, only a few business owners had successfully recovered their money. The rest faced bureaucratic hurdles, unclear instructions, and demands for excessive documentation.

At the heart of the issue lies confusion over what counts as 'advertising' versus 'signage'. Companies already pay taxes on their goods and services, making the extra charges an unexpected financial strain. Regulators have acknowledged the errors and voided the assessments, but the money has yet to reach businesses’ accounts. With around 260 million tenge still tied up, affected entrepreneurs continue to push for the return of their frozen funds. The case has also raised questions about how tax assessments are applied and reviewed in the future.