«The procedure for conducting tax audits»

The procedure for conducting tax audits is regulated by three main regulations:

-Tax Code (Chapter 18)

- Entrepreneurial Code

-  Administrative Procedure Code (APC, section 3).


From January 01, 2023 tax audits are divided into the following types:

1. Periodic tax audits based on a risk assessment (scheduled).

2. Unscheduled tax audits.

Periodic audits are appointed based on the results of the analysis of tax reports, information from authorized bodies, as well as information on the activities of taxpayers obtained from official and open sources of information. The basis for the appointment of this type of auditsis a half-year schedule approved by the decision of the authorized body (SRC MF RK), which is posted on the Internet resource until December 25 of the year preceding the year of audits, and until May 25 of the current calendar year. Changes to a half-year audit schedule are not allowed.  A "notice" is handed over in 30 calendar days prior to this type of audits, after this period, a "prescription" for conducting an audit is formed and handed to the taxpayer, which is pre-registered with the Department on legal statistics and special accounts of the East Kazakhstan region.

Unscheduled inspections include all other types of inspections, (paragraph 3 of Article 145 of the Tax Code) for example:

- according to the tax application or the complaint of a taxpayer.

- according to the taxpayer's tax application to confirm the reliability of excess VAT amounts.

- on the grounds provided for by the Criminal Procedure Code of the Republic of Kazakhstan.

- based on the decision of the authorized body (SRC MF RK).

- in case of non-fulfillment of the notification of the tax authorities on the elimination of violations detected by the results of cameral control with an average risk, etc. by the taxpayer.

A special procedure for the appointment of unscheduled inspections is provided by the Administrative Procedural Code of the Republic of Kazakhstan (APC). The tax authorities must notify the taxpayer in 3 working days prior the time of delivery of the prescription for the audit, and conduct a procedure for hearing within the APC. Based on the results of the hearing, a "protocol" is drawn up, which familiarize the taxpayer. Within three working days, the taxpayer is given the opportunity to express his position in writing, and an additional declaration is provided with the elimination of the detected violation in case s/he agrees with the detected violation. When the violation is eliminated, a tax audit is not appointed. If no reply is received after three working days, a prescription for an unscheduled inspection is formed.

The procedure and rules for conducting periodic and unscheduled tax audits are single. A prescription with registration in the Department on legal statistics and special accounts of the East Kazakhstan region of East Kazakhstan region is handed to an official, in case of his absence to face his or her replacement. After the receipt of the prescription, amendments to the tax reporting are not allowed.

When conducting a tax audit, the inspector is guided by Article 19 of the Tax Code, which stipulates his rights and obligations.

Based on the results of the audit, an "inspection report" is drawn up, which is signed and handed over to the taxpayer. The completion of the audit is considered to be the date of delivery of the audit report to the taxpayer. If there are detected violations based on the results of the audits, a "notification of the results of the audit" is attached to the audit report, which is handed over to the taxpayer within 5 working days. The notification is certified by the signature and seal of the taxpayer, the signatures of the tax inspector conducting the audit, an official of the tax Authority and the seal of the tax authority.

If the audit expects an additional charge exceeding 50,000 MCI  (3450-50 000 = 172 500 000 tenge), then a "preliminary act" is drawn up until the completion of the audit. The taxpayer has the right to submit a written objection to the "preliminary act" in person within 15 working days from the date of delivery of the preliminary act of tax audit.