Kazakh soldiers guard a road in Almaty. The country's largest city has experienced days of violent unrest. Photo: AP
Kazakh soldiers guard a road in Almaty. The country's largest city has experienced days of violent unrest. Photo: AP
Kazakh soldiers guard a road in Almaty. The country's largest city has experienced days of violent unrest. Photo: AP
Kazakh soldiers guard a road in Almaty. The country's largest city has experienced days of violent unrest. Photo: AP

Kazakhstan's leader Nazarbayev faces simmering anger despite receding protests


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As protesters armed with sticks and captured police shields prepared to storm the mayor's office in Kazakhstan's largest city Almaty, they marched to chants of "old man out".

They were not referring to President Kassym-Jomart Tokayev, 68, but Nursultan Nazarbayev, the octogenarian who, after more than 25 years in office, picked Mr Tokayev, a career diplomat, as his successor in 2019.

At least 164 people have been killed in over a week of street violence, health officials said on Sunday.

Since Kazakhstan's independence from the Soviet Union in 1991, Mr Nazarbayev has been synonymous with the world's ninth-largest country, a majority-Muslim, Central Asian state rich in oil.

But the 81-year-old has yet to appear in public since the country was plunged into unprecedented chaos this week when demonstrations over a fuel price increase escalated into armed clashes between police and protesters.

For many residents of the city of 1.8 million people, the strongman who styles himself as a force for stability in the wider region is an increasingly incendiary and divisive figure.

"Kazakhstan has been turned into a private company of the Nazarbayevs," said Saule, 58, as Almaty residents surveyed the charred, bullet-strewn territory of the presidential residence whose now-battered gates open out on to a street named after him.

"One clan lives well and everyone else is in poverty," said Yermek Alimbayev, a builder who was chatting with volunteers manning a makeshift checkpoint in the city, where the Kazakh military and a force from the Russia-led Collective Security Treaty Organisation have secured strategic buildings.

In one particularly striking image this week, demonstrators pulled down a statue of Mr Nazarbayev in the provincial town of Taldykorgan.

The breadth and depth of anger now laid at his door would once have been unimaginable.

  • Police block a street leading to the official presidential residence in Kazakhstan's capital Nur-Sultan, after protests against the government. Reuters
    Police block a street leading to the official presidential residence in Kazakhstan's capital Nur-Sultan, after protests against the government. Reuters
  • Protesters gather in a square outside an administration office in Aktau, capital of the resource-rich Mangistau region in Kazakhstan. AFP
    Protesters gather in a square outside an administration office in Aktau, capital of the resource-rich Mangistau region in Kazakhstan. AFP
  • A burnt-out digger destroyed in protests triggered by fuel price increases, in Kazakhstan's trading and cultural hub Almaty. Reuters
    A burnt-out digger destroyed in protests triggered by fuel price increases, in Kazakhstan's trading and cultural hub Almaty. Reuters
  • A man stands in front of the mayor's office building that was torched during protests in Almaty. Police there have reported killing dozens of rioters since Wednesday. Reuters
    A man stands in front of the mayor's office building that was torched during protests in Almaty. Police there have reported killing dozens of rioters since Wednesday. Reuters
  • Burnt-out cars in central Almaty. Authorities said at least 18 members of the security forces have been killed in the violence in the city. AFP
    Burnt-out cars in central Almaty. Authorities said at least 18 members of the security forces have been killed in the violence in the city. AFP
  • A fire truck destroyed in the protests, in front of the presidential residence in Almaty. Reuters
    A fire truck destroyed in the protests, in front of the presidential residence in Almaty. Reuters
  • A man walks past a car that was overturned and destroyed during the protests in Almaty. Reuters
    A man walks past a car that was overturned and destroyed during the protests in Almaty. Reuters
  • Smoke billows from the Kazakhstan state TV channel building, which was torched during protests in Almaty. Reuters
    Smoke billows from the Kazakhstan state TV channel building, which was torched during protests in Almaty. Reuters
  • Russian military vehicles wait to be loaded on to military aircraft at an airfield outside Moscow, to fly to Kazakhstan. They are part of an alliance of former Soviet states being sent to control the uprising. AP
    Russian military vehicles wait to be loaded on to military aircraft at an airfield outside Moscow, to fly to Kazakhstan. They are part of an alliance of former Soviet states being sent to control the uprising. AP
  • Russian military vehicles wait to be loaded on to a military cargo plane Chkalovsky airbase, outside Moscow, as part of a force heading to Kazakhstan. AFP
    Russian military vehicles wait to be loaded on to a military cargo plane Chkalovsky airbase, outside Moscow, as part of a force heading to Kazakhstan. AFP
  • A Russian military plane with Belarusian troops on board waits to take off from an airfield outside Minsk, Belarus, to fly to Kazakhstan. AP
    A Russian military plane with Belarusian troops on board waits to take off from an airfield outside Minsk, Belarus, to fly to Kazakhstan. AP
  • Russian paratroopers board a military plane at Chkalovsky airbase, headed for Kazakhstan. AFP
    Russian paratroopers board a military plane at Chkalovsky airbase, headed for Kazakhstan. AFP

Credited with overseeing impressive economic growth in the years after the millennium, the one-time steelworker and Communist Party bigwig benefitted from a personality cult that blossomed even as local incomes were hammered by successive economic crises.

Image consultants promoted his reputation abroad as an elder statesman committed to nuclear diplomacy and world peace.

Among them was former British prime minister Tony Blair, who continued to advise Mr Nazarbayev even after police lethally repressed a 2011 oil strike in the western town of Zhanaozen, where this week's unrest over the fuel price rise began.

While the precise contours of the political crisis that has engulfed Kazakhstan are unclear, it is evident that the ruling elite has been roiled.

On Saturday, the authorities announced the arrest on treason charges of Karim Masimov, a high-profile Mr Nazarbayev ally who was dismissed from his post as security committee chief at the height of the unrest.

A notice on the presidential website said Mr Tokayev had also appointed a new man as the committee's first deputy – a role previously occupied by Mr Nazarbayev's nephew, Samat Abish.

Mr Tokayev has not mentioned the former president in a series of addresses to the nation since the crisis began, though he did say he was taking over as head of the national security council.

Mr Nazarbayev had assumed the powerful position as part of the power transition.

Mr Nazarbayev's spokesman on Saturday denounced rumours that the ex-leader had left the country, saying he was in the capital Nur-Sultan and in touch with Mr Tokayev.

If the Nazarbayev political star is finally on the wane in Kazakhstan, then his relatives shoulder some of the blame.

Oldest daughter Dariga Nazarbayeva's political career, mainly in the rubber-stamp legislature, has been marked by a series of controversial statements and perceptions of an abrasive style.

Offshore leaks and a high court challenge in London have revealed the extent of her family's foreign property holdings – part of a capital flight trend Mr Nazarbayev officially discouraged while president.

His middle daughter Dinara and her husband Timur Kulibayev control Halyk, the largest commercial bank, and are among the richest people in the country.

Activists blame youngest daughter Aliya Nazarbayeva's ties to a recycling monopoly controlled by opaque private companies for a surge in the price of cars.

Rustam Nugmanov, 48, who arrived in Almaty on Saturday morning on the first train allowed to leave the capital for the troubled southern city, said Kazakhs had "woken up" and were ready for life without Mr Nazarbayev.

"He did a lot for the country, but could have done so much more," said Mr Nugmanov. "Maybe he just wasn't capable. Greed, other human weaknesses. He kept feeding those weaknesses."

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

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Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: January 09, 2022, 3:53 PM