On major changes to the cameral control

Currently, the state revenue authorities are are increasingly focused on remote control measures over the fulfillment of tax obligations by certain categories of taxpayers. The main one is the cameral control exercised by  the tax authorities on the basis of study and analysis of the submitted tax reports, information from authorized state bodies, as well as other documents and information about the taxpayer's activities.

The main changes were made to the cameral control and its results.

An addition has been made to Article 95 of the Tax Code to carry out cameral control after electronic invoices are issued and (or) for the relevant tax period after expiration of the time period for submitting tax reports established by the Tax Code and is carried out during the limitation period in accordance with Article 48 of the Tax Code

Since January 01, 2023, a gradation of violations in the degree of risk has been introduced and the procedure for executing notifications based on the results of cameral control has been revised, which we will look in more detail.

In case of detection of violations based on the results of cameral control, the following documents are issued:

- for high-risk violations with – notification on elimination of violations identified by the tax authorities based on the results of cameral control accompanied by description of detected violations.

At the same time, high-risk violations are violations identified by the results of cameral control conducted after issuing invoices in electronic form in order to actually turnover for the sale of goods, the provision of works and services;

- for medium-risk violations – notification on elimination of violations identified by the tax authorities based on the results of cameral control accompanied by description of the detected violations and their degree of risk;

- for low-risk violations - a notification on violations identified by the results of cameral control accompanied by description of the detected violations and their degree of risk, which are sent to the taxpayer for information.

Execution of the notification on cameral control is carried out by the taxpayer within 30 working days from the day following the day of its handing (receipt) supplemented by the case of revocation, correction or addition of invoices issued in electronic form, in accordance with the procedure established by the tax legislation of the Republic of Kazakhstan.

In case of disagreement with mentioned medium-risk violations in the notification  - submission of an explanation of the absence of violations accompanied by extracts from the registers of tax and (or) accounting  and (or) documents related to the specified violations confirming the accuracy of the data entered in the tax reporting, except for the cases provided for in paragraph 3 of Article 96 of the Tax Code by the taxpayer (tax agent) on paper or in electronic form  to the tax authority that sent the notification of cameral control;

In case of disagreement with mentioned high-risk violations in the notification - submission of an explanation accompanied by copies of documents confirming the fact of transactions (deals) specified in the violations by the taxpayer (tax agent) on paper or in electronic form to the tax authority that sent the notification of cameral control.

Execution of the notification by providing an explanation by the taxpayer is supplemented with a paragraph indicating the circumstances of the disagreement of the person who submitted the explanation with the violations indicated in the notification with the compulsary attachment of the documents specified in subparagraphs 2) and 3) of part two of paragraph 2 of Article 96 of the Tax Code

Measures to suspend expenditure transactions on bank accounts will be applied only to taxpayers who did not respond to the notification and/or did not provide a basic list of documents required for the analysis and application of the risk management system.

In respect of taxpayers who have executed notifications formally without eliminating violations, notifications will be recognized as executed, while it is supposed to establish the certain risk level and, accordingly, it is recommended to conduct a tax audit on them. 

For high-risk violations, non-fulfillment within the prescribed period and (or) recognition as unfulfilled of the notification on elimination of violations identified by the tax authorities based on the results of cameral control entail restriction of the issuance of electronic invoices in the electronic invoice information system in accordance with Article 120-1 of the Tax Code.

Thus, from 2023, taxpayers will need to to correct violations identified by the tax authorities during camerl control on their own, within the time limits established by the Tax Code, which will exclude the use of measures (suspension of expenditure transactions on accounts, etc.)  to them. In case of disagreement with the violation, it is necessary to ensure the submission of substantial materials confirming the absence of a tax obligation, in accordance with the new amendments to Article 96 of the Tax Code.