The procedure for handing over the preliminary tax audit report.
In order to support business entities, the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (hereinafter referred to as the Tax Code) has been amended, granting taxpayers the right to submit written objections to the preliminary results of the audit before the end of the tax audit.
To implement these amendments, the Order of the Minister of Finance of the Republic of Kazakhstan dated January 12, 2018 No. 20 approved the "Rules and deadlines for handing a preliminary tax audit report to a taxpayer, submitting a written objection to a preliminary tax audit report, considering such an objection, as well as the categories of taxpayers in respect of whom the rules on the preliminary tax audit act apply" (hereinafter – the Rules).
This provision allows to reduce the number of complaints about notifications of audit results, and also provides an opportunity for taxpayers to regulate tax disputes within the state revenue bodies before the end of the audit.
These Rules are developed in order to implement Article 157 of the Tax Code.
The provisions of these Rules apply to tax audits that lead to the accrual of taxes and other mandatory payments to the budget, with the exception of:
1) thematic inspections on the issue of confirming the reliability of the amounts of excess value-added tax, including those presented for refund and conducted against the taxpayer on the basis of:
the taxpayer's requirements in the value-added tax declaration to confirm the reliability of the amounts of value-added tax presented for refund;
inspections on the basis of a non-resident's tax application for income tax refund from the budget in connection with the application of the provisions of the international treaty on the avoidance of double taxation, as well as in connection with a non-resident's request for reconsideration of such a tax application.
Categories of taxpayers who have the right to file objections to the preliminary act of tax audit:
1. subject to tax monitoring;
2. those who have concluded investment contracts;
3. according to the acts of inspections, the accrual of which exceeds 20,000 MCI.
Procedure and term of delivery of the preliminary act to the taxpayer:
- the preliminary act is handed over to the taxpayer (tax agent) personally under signature at least 5 working days before the end of the tax audit period;
- simultaneously with the preliminary act, a notice of suspension of the tax audit is served in accordance with paragraph 4 of Article 146 of the Tax Code;
- if it is impossible to hand over a preliminary act to a taxpayer (tax agent) due to its absence at the location, a tax survey is conducted with the involvement of witnesses in accordance with the procedure established by Article 70 of the Tax Code.
A written objection to the preliminary act is submitted to the state revenue authority carrying out the tax audit in an appearance order within 15 working days from the date of delivery of the preliminary act.
A written objection is considered within the limits specified in it within 5 (five) working days from the date of its receipt
The written objection contains:
1) the name of the state revenue authority carrying out the tax audit;
2) the surname, first name and patronymic (if any) or the full name of the taxpayer (tax agent) and (or) the legal or authorized representative in accordance with Article 16 of the Tax Code filing a written objection, his place of residence (location);
3) identification number;
4) the date of signing of the written objection by the taxpayer (tax agent);
5) the circumstances on which the person filing a written objection bases his claims and evidence confirming these circumstances;
6) list of attached documents.
The taxpayer (tax agent) has the right to withdraw a previously submitted written objection.
The tax audit is subject to completion in accordance with the procedure established by Chapter 18 of the Tax Code, in the following cases:
1) failure to submit a written objection within the period established by these Rules, within 3 (three) working days from the date of its expiration;
2) withdrawal of the written objection within 3 (three) working days from the date of receipt by the state revenue authority of the withdrawal of the written objection;
3) absence of the taxpayer at the location based on the results of the tax survey within 1 (one) working day from the date of drawing up the tax survey report.
In cases of disagreement of the state revenue body carrying out the tax audit with the objections of the taxpayer (tax agent) related to the calculation of taxes and other mandatory payments to the budget set out in the written objection to the preliminary audit report, the state revenue body carrying out the tax audit, during the period of consideration of such an objection, sends a request to the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (hereinafter - the SRC of the Ministry of Finance of the Republic of Kazakhstan).
The SRC of the Ministry of Finance of the Republic of Kazakhstan considers the request of the state revenue body carrying out the tax audit within the circumstances on which the person who filed the objections bases his claims and evidence, as well as within the evidence and justifications specified in the position of the state revenue body carrying out the tax audit within 10 working days.
If it is necessary to send a request for additional information, consideration of this objection is extended to 30 calendar days.
Based on the results of consideration of the taxpayer's written objection to the preliminary tax audit report by the state revenue body conducting the tax audit, a tax audit report is drawn up taking into account the decision taken on the written objection, including the response of the SRC of the Ministry of Finance of the Republic of Kazakhstan, and the tax audit is completed in accordance with the procedure established by Chapter 18 of the Tax Code.