On the work which was carried out on large taxpayers of the republican monitoring on the fact of mutual settlements with unreliable suppliers

On the work which was carried out on large taxpayers of the republican monitoring on the fact of mutual settlements with unreliable suppliers

          The State Revenue Department for the East-Kazakhstan region hosts events on a regular basis to detect and disrupt tax evasion, which is one of the main sources of revenue side of the republican budget.

Article 18 of the Code of the Republic of Kazakhstan №120-VI dated 25 December 2017 «On taxes and other obligatory payments to the budget» (hereinafter -  the Tax Code) specifies that the state revenue bodies perform tasks including: ensuring compliance with tax legislation, ensuring tthe completeness and timeliness of the receipt of taxes  and payments to the budget, as well as ensuring the economic security of the Republic Kazakhstan within its competence and performance of other tasks stipulated by the legislation

We would like to note that according to subparagraph 11) of paragraph 1 of Article 6 of the Law of the Republic of Kazakhstan «On National Security in the Republic of Kazakhstan» №527- IV dated 6 January 2012, one of the types of threats to national security is damaging economic security of the state, including uncontrolled export of capital and goods outside the country, as well as the growth of the shadow economy.

At the same time, factors contributing to the growth of the shadow economy include evasion of taxes to the budget, which is often due to overestimation of the expenditure side, reflecting documents in accounting and tax records, including invoices from persons without actual performance of works, rendering of services, shipment of goods and if the VAT supplier, who is non-VAT payer has issued invoices with the allocated amount of VAT, then the amount of VAT is not subject to offset in accordance with Article 400 of the Tax Code of the Republic of Kazakhstan.

In turn, the supplier has administrative liability in accordance with Article 280 of the Code of administrative offences of the Republic of Kazakhstan №235-V dated 5 July 2014 (hereinafter - CoAO) according to which:

«Issue of a fictitious invoice by a taxpayer entails a fine for small businesses in the amount of thirty-five monthly calculation indices, for medium-sized businesses - in the amount of one hundred and twenty, for large businesses - in the amount of two hundred percent of the amount of value added tax included in the invoice».

There are also cases where a taxpayer intentionally reflects VAT, which is offset fictitious transactions. That is, VAT for a non-existent transaction without the availability of invoices, or fictitious transactions backed up by fictitious invoices were taken as an offset . Such actions, as a rule, violate the principle of good faith of the taxpayer and have signs of an invalid transaction.

Measures to regulate tax evasion are taken in compliance with the legislation (tax audit, lawsuits are pending in the courts on the invalidation of illegal agreements, notifications of cameral control are issued).

Thus, the state revenue authorities of the East - Kazakhstan region are constantly working to crack down on tax evasion by taxpayers on the fact of mutual settlements with suppliers and on recognition of invalid transactions.

For example, as a result of the analysis of 194 mutual settlements (counterparties) of large taxpayers for the period 2018-2021, despite the fact that out of the total turnover of 5.5 billion tenge, according to mutual settlements for the total turnover of 3.7 billion .tenge, this is about 82% of the total amount of the verified turnover of the origin of goods, or the services provided corresponded to the type of activity, at the same time, in 18% of the turnover of 1 billion tenge, alleged schemes were identified where the origin of goods was not established or the services provided did not correspond to the type of activity. To date, the facts of fictitiousness have been confirmed for the amount of turnover of 426 million tenge and taxpayers have submitted additional reporting forms, for mutual settlements for the amount of turnover of 89 million tenge, suppliers have been brought to administrative responsibility under Article 280 of the CoAO of the RK and are currently before the courts, for mutual settlements for the amount of turnover of 30 million tenge are currently before the courts for recognition of registration of taxpayer  as invalid.

In view of the above, each taxpayer should remember that he is responsible for the correctness and completeness of the information reflected in the submitted tax report.