Analytical report
on the results of an internal analysis of corruption risks in the activities of the Department of State Revenue in Astana
In order to identify and study possible causes and conditions conducive to the commission of corruption offenses in accordance with the Constitution of the Republic of Kazakhstan, the Law "On Combating Corruption", the Standard Rules for Conducting Internal Analysis of Corruption Risks, approved by Order No. 21 of the Chairman of the Agency of the Republic of Kazakhstan for Combating Corruption dated January 16, 2023 (hereinafter referred to as the Model Rules), the order No. 64 dated March 13, 2024 "On Conducting an internal Analysis of Corruption Risks in the Activities of the State Revenue Department in the city of Astana", as well as within the framework of the implementation of the standard basic direction No. 4 "Prevention and combating corruption" (hereinafter - TBN No. 4), an internal analysis of corruption risks in the activities of the Department of State Revenue in Astana was carried out.
An internal analysis of corruption risks was conducted by a working group defined by Order No. 64 dated March 13, 2024, consisting of employees with practical experience in applying industry legislation in their activities: deputy head, heads of Departments of the Department and customs posts.
Data from information systems and other analytical information were studied to identify corruption risks and make recommendations.
The internal analysis of corruption risks in the Departments and customs posts of the Department was carried out in accordance with the Standard Rules and Instructions for the execution of TBN projects No. 4 in the following stages:
1) collection and generalization of information about the object of analysis;
2) analysis of legal acts and internal documents regulating the activities of the object of analysis, its organizational and managerial activities for the presence of corruption risks;
3) preparation and signing of the analytical report;
4) identification of positions subject to corruption risks;
5) control and monitoring of the implementation of recommendations to eliminate the causes and conditions conducive to the commission of corruption offenses identified by the results of an internal analysis of corruption risks.
In the course of the work, the following were analyzed:
- legal acts and internal documents regulating the activities of the Department;
- provision of public services;
- appeals of individuals and legal entities in relation to the object of analysis;
- development and distribution of budgetary and financial resources for the period 2023 and the expired period 2024;
- information systems;
- establishing the facts of hiring persons who have previously committed a corruption offense;
- identification of persons engaged in activities incompatible with the performance of state functions;
- establishing the facts of joint service (work) of close relatives, spouses and relatives;
- establishing the facts of the exercise of official duties in the presence of a conflict of interest;
- sending civil servants to anti-corruption training.
Taking into account the multiplicity of functions and the intersectoral nature of the Department's work, the main areas of activity were covered by the analysis, namely:
1. implementation of control and audit functions;
2.Implementation of permissive functions;
3.legal acts and internal documents regulating the activities of the OGD;
4. development and operation of information systems;
5. Other issues arising from organizational and managerial activities.
According to the results of the analysis, 13 corruption risks were identified:
The area of activity covered by the analysis
1.Implementation of control and audit functions
The name of the corruption risk
The employee's direct contact with legal entities and individuals.
Description of the corruption risk
The employee's contact (correspondence) with the exporter/importer is carried out on paper without the use of information systems.
Recommendations for eliminating the risk
Prior to the development of the information system (hereinafter referred to as the IS), it is necessary to provide employees conducting currency control with the opportunity to send requests for documents to exporters/importers through the IS "Taxpayer's Office".
2.Implementation of permissive functions
The name of the corruption risk
Implementation of the organization of work on tax administration in terms of conducting tax audits.
Description of corruption risk
If a taxpayer (tax agent) submits documents for consideration of a complaint that were not submitted by him during a tax audit, the authorized body has the right to establish the authenticity of such documents during thematic and (or) repeated thematic inspections appointed in accordance with the procedure established by Article 186 of this Code.
Recommendations for eliminating the risk
Exclude paragraph 4 of Article 181 of the Tax Code of the Republic of Kazakhstan. The exclusion of the acceptance of additional documents, because during the audit, the taxpayer is given enough additional time by submitting a request for the provision of documents. And only after accepting all the exhaustive circumstances and providing the documents, an inspection report is drawn up.
3 Analysis of regulatory legal acts affecting the activities of the OGD 1)The name of the corruption risk In accordance with Chapter 2 of the Order of the Minister of Finance of the Republic of Kazakhstan No. 188 dated February 142018 "On approval of the Rules for Customs inspection and inspection" (hereinafter referred to as the Order)before conducting a customs inspection an authorized official notifies in writing (in any form) of the place and time of customs inspection of the declarant or another person who has authority over the goods if these persons are known In practice when determining the date and time of customs inspection an official of the state revenue authority independently determines the time and date of customs inspection Description of the corruption risk The Order does not clearly specify the time limit for determining the time of appointment of customs inspection as a result, the OGD employee has the opportunity to subjectively approach this issue The absence of such a norm in the Code and the Order makes it possible for officials of the OGD to illegally delay the timing of customs inspection The lack of clear regulations creates potential corruption risks which consist in the ability of officials of state revenue agencies to provide an illegal advantage to declarants Recommendations for eliminating the risk The addition of Chapter 2 of the Order with paragraph 7.1 as follows "The date and time of the appointment of customs inspection is appointed within 1 working day on the day of the decision to conduct the inspection" 2) The name of the corruption risk The Code of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan" (hereinafter referred to as the Code) does not contain a norm regulating the fixation of structures premises and territories for compliance with established requirements and conditions using photo and (or) video filming during customs inspection Description of the corruption risk The absence of the above-mentioned norm in the Code makes it possible for officials of the OGD to illegally conduct a customs inspection namelyconceal the possible inconsistency of premises and territories with the established requirements which creates potential corruption risks consisting in reciprocity between officials of state revenue bodies and business participants Recommendations for eliminating the risk An addition to paragraph 8 of Article 415 of the Code reads as follows "Customs inspection of premises and territories must be carried out as soon as possible necessary for its conduct and may not last more than one working day The period of time for conducting a customs inspection of premises and territories may be extended by the head of the customs authority or by a person acting in his place or by the deputy head of the customs authority but not for more than five working days with information about the extension reflected in the order for conducting a customs inspection of premises and territories The process of conducting a customs inspection is recorded using photo and (or) video the results of which are attached to the act of customs inspection"
3) The name of the corruption risk
The risk lies in interaction (collusion) an employee of a customs post and an individual when moving goods in large quantities not included in the list of the Order of the Minister of Finance of the Republic of Kazakhstan dated March 31, 2015 No. 250 "On establishing criteria for classifying goods transported by individuals across the customs border of the Customs Union as goods for personal use" (hereinafter - Order 250).
Description of corruption risk
When importing goods in an amount not exceeding 10,000 euros and 50 kg. in accompanied baggage, within the limits of the carriage standards, according to the Decision of the Council of the Eurasian Economic Commission dated December 20, 2017 No. 107 "On certain issues related to goods for personal use" (hereinafter referred to as Decision 107), but not specified in Order 250, an individual may collude with an employee of the customs post on unhindered passage through the green the corridor, as Order 250 covers a limited list of goods transported by individuals. To date, the range of products is very large and includes radio, electrical equipment, household appliances, dishes, various gadgets, cosmetics, etc.
Recommendations for eliminating the risk
Guided by subparagraph g) of paragraph 1 of Decision 107 and paragraph 4 of Article 339 of the Code of the Republic of Kazakhstan dated December 26, 2017 No. 123-VI of the ZRK "On Customs Regulation in the Republic of Kazakhstan", we consider it necessary to establish uniform rates of customs duties, taxes, as well as categories of goods for personal use, in respect of which customs duties are payable and taxes in the form of an aggregate customs payment (hereinafter referred to as STP).
1. Depending on the nature and quantity of goods, as well as the frequency of movement of goods imported by individuals in accompanied and unaccompanied baggage, goods that exceed the following indicators:
- clothing and shoes 2 (two) items of the same name, size and style per person (except for used ones);
- hats of 2 (two) items of the same name, size and style per person (except for used ones)
- toiletries and perfumery and cosmetic products 3 (three) items of the same name per person (excluding used ones)
- dinnerware and kitchen utensils 3 (three) items of the same name per person (except for used ones);
- biologically active additives, vitamins in 5 packages, packs, containers of one type name per person (with the exception of used ones).
- other items not listed above used in the household or household - 2 (two) items of each name per person (except for used ones).
2. The frequency of crossing an individual and (or) moving goods across the customs border of the Customs Union does not exceed 1 (one) once a month.
4. Development and operation of information systems
1)The name of the corruption risk
Declaration in writing using transport (transportation), commercial and (or) other documents as a customs declaration makes it possible to evade compliance with technical regulation measures with the direct participation of officials of state revenue bodies.
Description of corruption risk
In accordance with paragraph 4 of Article 175 of the Code of the Republic of Kazakhstan dated December 26, 2017 No.123-VI of the Law of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan", customs declaration using transport (transportation), commercial and (or) other documents as a customs declaration is allowed in writing. The decision on the possibility/impossibility of declaring goods using as a declaration for goods is made by an authorized official of the state revenue authorities.
Recommendations for eliminating the risk
The introduction of the Keden IP will enable the customs declaration of goods using transport (transportation), commercial and (or) other documents in electronic form as a customs declaration with the mandatory use of a risk management system (RMS) and format-logical control (FLC).
2) The name of the corruption risk
The process of notification execution and the formation of a conclusion based on the results of desk control.
Description of corruption risk
In the process of execution by the taxpayer of the notification of desk control, the taxpayer does not have the opportunity to monitor the process of execution of the notification and the formation of an opinion based on the results of desk control, that is, there is no feedback from the taxpayer regarding the execution / non-execution of the notification, i.e. in the "Taxpayer's Office" there is no possibility to view the status of execution of the notification of desk control. Due to the lack of such an opportunity, taxpayers turn to a specialist in order to obtain information.
Recommendations for eliminating the risk
In order to eliminate the corruption risk in terms of unjustified taking measures on desk control notifications, we propose to introduce a regime for tracking the execution of the notification until it is fully executed and forming an opinion in the "Taxpayer's Office", as well as automate the process of taking measures: assigning the status of execution of the notification to the RPRO in the "Taxpayer's Office" with the possibility of viewing from the taxpayer, sending a notification about the appearance for the preparation of administrative material on untimely notifications, electronically in the "Taxpayer's Office". Such functionality will ensure timely control and the inevitability of taking measures against taxpayers who have not fulfilled (untimely fulfilled) the notification of desk control. In addition, the taxpayer will be aware of the notification status. Similarly, provide for other types of notifications of the OGD.
3) The name of the corruption risk
The process of non-fulfillment of the notification and the formation of an in-house control RPO.
Description of corruption risk
If the NP for which the notification is posted in the RVD does not have an EDS, the notification is sent by registered mail. In case of return of the envelope, according to the regulations, the RPO is issued and an act of tax inspection is carried out. Further, if the notification is handed over in person, the RPO is automatically withdrawn in the EHD. In case of non-fulfillment of the handed notification after 30 working days, the RPO must be re-issued to the NP's bank accounts, however, the RPO is not re-issued in the RVU system, and employees form the RPO by creating a notification (technical duplicate) based on the INIS of the Republic of Kazakhstan.
Recommendations for eliminating the risk
In order to eliminate the risk of corruption, it is proposed to include access to the EHD re-formation of the order in connection with non-fulfillment of the notification.
4) The name of the corruption risk
Illegal withdrawal of the RPO at the specialist level on unfulfilled notifications on the elimination of violations identified by the tax authorities based on the results of desk control.
Description of corruption risk
According to the formed RPO in the IS of the ECD of the Russian Federation, due to non-fulfillment of the notification on the elimination of violations identified by the tax authorities based on the results of desk control, currently all employees have the opportunity to revoke the RPO through IS INIS (management of orders on suspension of expenditure transactions on bank accounts).
Recommendations for eliminating the risk
In order to eliminate corruption risks, it is proposed to revoke the RPO at least at the level of deputies of the Department of Internal Affairs.
5) The name of the corruption risk
Distribution of VAT refund checks.
Description of corruption risk
To date, the procedure for distributing VAT refund checks is carried out manually by the head of the department or the head of the department.
Recommendations for eliminating the risk
In this regard, in order to be objective and reduce corruption risks, we propose to automate the process of distributing VAT refund checks through OGD information systems. During the distribution, consider the following criteria:
- the presence of ongoing checks on the employee;
- frequency of inspections;
- the amount of the claim;
- verification period;
- the subjectivity of the enterprise , etc.
6) The name of the corruption risk
Determination of the amount of non-refundable VAT for identified violations of the analytical report "Pyramid" by suppliers.
Description of corruption risk
During the verification, the amount of VAT that is not eligible for refund consists of:
- the amount of VAT that is not refundable for detected violations of level 1;
- the amount of VAT that is not refundable due to the presence of violations identified as a result of the application of SUR;
- the amount of VAT that is not refundable due to the presence of violations identified as a result of the application of the risk Pyramid;
- the amount of VAT on the export of goods for which foreign exchange earnings have not been received;
- the amount of VAT for which there is no confirmation of the export of goods, etc.
These amounts are calculated by employees independently based on the information provided by the STB, generated Pyramid reports, etc.
Recommendations for eliminating the risk
In order to exclude unjustified refunds made by the human factor, we propose to automate the calculation of VAT amounts that are not refundable by deducting the smallest amount of VAT that is not refundable when applying RMS, according to the risk Pyramid report.
7) The name of the corruption risk
The untimely adoption of enforcement measures, in the form of a decision on restrictions on the disposal of property, as well as the untimely withdrawal of such decisions.
Description of the corruption risk
To date, the district departments of state revenue in Astana, decisions on the restriction of the disposal of property, reviews of decisions on the restriction of the disposal of property are sent to the authorized bodies, namely to the Administrative Police Department (GAI) and the Office of Control and Quality of the Urban Environment with a document in the "Word" format through the "Documentologist" program. Accordingly, this method is an opportunity for the emergence of causes and conditions conducive to the commission of corruption offenses and untimely measures.
For example, an employee of the Department of Internal Affairs may simply exclude (since the "Word" format) from the list of debtors, a taxpayer, on whose property it is necessary to make decisions on restricting the disposal of property, or may simply make a mistake when copying or unloading. In automated mode, the human factor will be completely eliminated, in the form of a typo or error. Also, this method is irrational, since a large amount of time is spent on creating the decisions themselves on the restriction of the disposal of property and their reviews, the signature of the management of these orders. This procedure takes a lot of time, when both the same decisions and feedback are sent to the NAO "State Corporation "Government for Citizens" in an automated mode day after day. In order to minimize corruption manifestations, as well as eliminate domestic corruption, it is necessary to automate the system for sending decisions on the restriction of property disposal, as well as their feedback.
Recommendations for eliminating the risk
Automate the process of sending decisions on the restriction of the disposal of property to the authorized bodies.
5. Other issues arising from organizational and managerial activities
The name of the corruption risk
The risk of approving the final report if the bankrupt manager fails to take measures to bring bankrupt officials to subsidiary responsibility in accordance with Article 11 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy".
Description of corruption risk
According to Article 100 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy", money received by the bankrupt's estate as a result of the execution of a judicial act on bringing the founder or official to subsidiary liability is subject to referral to satisfy creditors' claims. Repayment of administrative expenses of bankrupt managers at the expense of such money is not allowed. In this connection, there is a possibility of collusion between the bankrupt manager and the debtor's representative regarding the transfer of financial and accounting documentation by drawing up a fictitious act of acceptance and transfer of documents. Due to the lack of actual access to documentation, the UGD employee agrees on the final report without bringing bankrupt officials to subsidiary responsibility by the bankrupt manager.
Recommendations for eliminating the risk
Amendments to the ZRK "On Rehabilitation and Bankruptcy" regarding consideration of the issue of payment of administrative expenses of a bankrupt manager at the expense of bankrupt officials.