One of the primary responsibilities of tax authorities is ensuring the completeness and timeliness of tax and payment collections to the budget. An effective tax control system is an essential element of any state's tax system, and tax audits are one of the key forms of tax control.
A tax audit is an inspection conducted by tax authorities to verify compliance with the provisions of the Tax Code of the Republic of Kazakhstan, as well as other applicable legislation.
Taxpayers are notified of upcoming tax audits at least 30 calendar days before the audit begins. The notification is sent or delivered to the taxpayer at the address listed in their registration details. A notification sent by registered mail with confirmation of receipt is considered delivered on the date the postal or other communication service acknowledges receipt.
The start date of a tax audit is the date the taxpayer receives the audit order or the date an act is drawn up documenting the taxpayer’s refusal to accept the audit order. The taxpayer must acknowledge receipt of the order by marking a copy. A taxpayer's refusal to accept the order does not cancel the audit. During the audit, officials conducting the audit are required to present their official identification to the taxpayer.
Taxpayers may not make amendments or additions to their tax reports for the audited tax period while the audit is ongoing.
Taxpayers are required to grant tax officials access to premises (except residential properties) used for generating income or to taxable objects and objects related to taxation. If access is denied, an act of «denial of access» is drawn up, signed by both the officials conducting the audit and the taxpayer. If the taxpayer refuses to sign the act, they must provide a written explanation of their refusal.
A taxpayer may deny access to tax officials for the audit if:
1) The audit order is not properly issued;
2) The audit dates specified in the order have not yet started or have expired;
3) The individuals conducting the audit are not listed in the order;
4) Tax officials do not have the special permits required for access to the taxpayer’s premises as per the laws of the Republic of Kazakhstan.
During a document audit, tax officials may require the taxpayer to provide documents confirming the correct calculation and timely payment of taxes and other mandatory payments to the budget. Written explanations regarding tax forms and financial statements submitted by the taxpayer. Access to view data in software systems used for automating accounting and tax reporting, except for banks and other organizations conducting specific banking operations containing banking secrecy.
Tax audits must be completed within 30 working days from the date of delivery of the audit order. For audits involving legal entities without structural subdivisions, individual entrepreneurs, or non-residents operating through permanent establishments with only one location in Kazakhstan, the audit period may be extended to 45 working days. The higher tax authority may further extend this period to 60 working days. For legal entities with structural subdivisions, non-residents with multiple locations in Kazakhstan, and large taxpayers subject to monitoring, the audit period may be extended to 75 working days, or up to 180 working days by the higher tax authority.
The audit is considered complete on the date the taxpayer is issued the tax audit report. The report must be prepared in at least two copies, signed by the officials conducting the audit, and one copy must be provided to the taxpayer. The taxpayer must acknowledge receipt of the report. If the taxpayer cannot be reached, a tax inspection is conducted, and the completion date is considered the date of the inspection.
If violations are identified, a notification is issued. The taxpayer must fulfill the obligations outlined in the notification within the specified timelines unless they appeal the audit results. If no violations are found, no notification is issued.
If the taxpayer or tax agent is absent at the time of the audit’s conclusion, this is noted in the tax audit report by the officials conducting the audit.