Las rentas e ingresos percibidos por el deudor tributario en el ejercicio, previa comprobación de la Sunat, aun cuando no hubiera presentado la declaración

The adjustments for informal and hidden output in industry are not very large. They mainly concern handicraft production carried out by households. These activities are largely concentrated in the food industry and to a lesser extent in clothing, jewelry and some other industries. Data for the adjustments are obtained from issued licenses and a special survey. In general, this type of production is confined to the informal sector, and there is a degree of hidden production that results from some handicraft producers deliberately not reporting income in order to avoid taxes. For example, because of their low price and high quality, hand-made clothes can compete in the local market and also be supplied to the CIS countries.

Apart from that, adjustments by the regions for concealed production of flour and bread are made by the balancing method, using the data from household budget surveys on consumption of these products by the population.

4.2 Construction

Some construction activities in Kyrgyzstan are carried out not by professional and formally organized building firms but by informal and temporary construction teams or directly by residents. These activities are taken into account by collecting data on the registration of constructed buildings and dwellings from the local authorities. Such activities are included in the informal sector. The information obtained in this way is sufficiently reliable to accurately reflect the physical volume of new construction.

However, the value of many structures may be understated at the time of registration. In the opinion of experts, the value of premises for office use is understated considerably and systematically. A similar situation applies with individual housing construction.

For example, the actual value of one square meter of housing in Bishkek is estimated by experts to be 150 to 300 US dollars, whereas the recorded value per square meter does not exceed 300 to 600 soms, which is about 10-15 times lower. Apart from that, adjustments for individual builders are made on the basis of the licenses issued.

4.3 Trade

Hidden economic activities are mainly concentrated in trade. Trade is also the second largest branch, after agriculture, in which households’ informal activities are concentrated. It is very difficult to check the reliability of reported trade data, especially when it relates to the activities of small enterprises or individual entrepreneurs (households).

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Hidden economic activities include trade and catering enterprises that have not been duly registered. The data for these enterprises are adjusted on the basis of branch averages obtained from special one-off surveys. Additional surveys and checks are conducted to correct for misreporting by trade enterprises that, for example, over-report intermediate consumption.

Informal trade activities are studied by carrying out systematic sample surveys of all types of markets throughout the country. These surveys are carried out professionally and their results are considered sometimes more reliable than the data of the sample Household Budget Survey. Data from surveys of informal markets are widely used, not only for calculating trade as a branch of the economy, but also for calculating households’ consumption of consumer goods and services.

In addition, reconciliation of the balance between supply and use is also employed with respect to certain consumer goods, such as alcohol, cigarettes and petroleum products. The level of recorded sales is compared to reasonable consumption levels for such goods and, where necessary, adjustments are made. In accordance with established practice, the entire volume of market sales is assigned to the informal sector.

4.4 Transport

Individuals provide a significant share of transport services in Kyrgyzstan. Since the collection of objective information directly from individual entrepreneurs is not possible, calculations are based on indirect information. For example, based on the data from the State Motor Vehicle Inspectorate on the number of serviceable lorries and buses owned or hired by private individuals, details of average distance travelled, average loads carried, and average earnings from transport operations. Calculations for passenger transportation by taxis are made using a similar method on the basis of data for licenses issued. The adjustment is allocated entirely to informal activities.

4.5 Services

The volume of produced market services is estimated on the basis of data from the statistical observation of enterprises providing services to the population, expert estimates of the volume of services provided by individual entrepreneurs and data from sample surveys of selected kinds of market services. Apart from that, adjustments for the activities of currency exchange bureaus, pawnshops and other market services are made on the basis of the reports of enterprises and the number of employed persons. The estimate received in such a way enables an adequate judgement of the scope of the hidden economy with respect to individual services.

4.6 Foreign trade

Foreign trade transactions undertaken by persons engaged in ‘shuttle trade’ are recorded on the basis of customs documents. Individuals exporting or importing goods in large quantities (e.g. by lorry or charter flight) fill up a cargo customs declaration. These data are regularly included in total figures for foreign trade. ‘Shuttle traders’ bringing goods into the country and taking goods out in small quantities by railway, air and automobile transport fill in a simplified customs declaration.