The rights and obligations of tax officials when conducting a tax audit
1) to request for and obtain from banks and organizations carrying out certain types of banking operations documents and information on the existence and numbers of bank accounts of the audited person, as well as documents and information concerning balances and movements of money in the accounts of taxpayers (audited persons) required for conducting an audit, including those constituting a bank secret in accordance with the legislation of the Republic of Kazakhstan;
2) to request for and obtain from state bodies documents and information required for conducting an audit, including those constituting commercial, bank, tax and other secrets protected by law in accordance with the laws of the Republic of Kazakhstan;
3) to request for and obtain accounting records in hard and soft copy, as well as access to automated databases (information systems) with respect to an audited item;
4) to request for and receive written explanations from the taxpayer, including his/her employees, of issues arising in the course of a tax audit;
5) to send requests to state and other bodies (organizations) of foreign states on issues arising in the course of a tax audit;
6) require of a taxpayer (tax agent) access to data from the software used to automate accounting and tax records, and (or) an information system containing data of primary accounting documents, accounting registers, information on taxable and (or) tax-related items, except for the right of access to viewing data of the software and (or) the information system of second-tier banks and organizations carrying out certain types of banking operations, which contain information on their clients’ bank accounts, which constitutes bank secrets in accordance with the laws of the Republic of Kazakhstan.
The exception established by this subparagraph does not apply to tax authorities’ requirements specified in the course of a tax audit in respect of income and expenses;
7) to examine property that is a taxable and (or) tax-related item, irrespective of its location, to take an inventory of property of the audited person (except for residential premises), also for comparing with information specified in freight invoices;
8) to identify, by an indirect method, taxable and (or) tax-related items in accordance with the procedure prescribed by this Code;
9) other rights stipulated by the legislation of the Republic of Kazakhstan.
1) to observe the rights and legitimate interests of the audited person, to prevent damage to the audited person by unlawful decisions and actions (inaction);
2) to ensure the safety of documents received and drawn up during the tax audit, not to disclose their contents without the consent of the audited person, except for cases provided for by the laws of the Republic of Kazakhstan;
3) to follow the professional ethics code;
4) to inform the audited person of his/her rights and duties in the course of a tax audit;
5) to inform of the rights and obligations of tax officials;
6) not to disturb the current work routine of the taxpayer (audited person) during the tax audit;
7) at the request of the audited person, to submit necessary information on the provisions of this Code relating to the procedure for conducting audits;
8) present an order to the representatives of the inspected person during a tax audit, as well as their service certificates or identification cards;
9) to perform other obligations stipulated by this Code.
The list of rights of officials of the tax authority during the tax audit is given in paragraph 1 of the commented article
In
accordance with the legislation of the Republic of Kazakhstan on administrative procedures, the rights of a state body are understood as the ability to perform certain actions to require certain behavior (actions or abstinence from performing actions). from another person (other persons)
The rights of a tax official to request information and documents correspond to the duties of second-tier banks and organizations engaged in certain types of banking operations government agencies and taxpayers (tax agents) to provide certain information and documents
The requirements of the official of the tax authority must be clearly expressed and properly documented Tax officials must have grounds for requesting information and documents The requested information and documents must be relevant to the issues of verification and the period under review which excludes the possibility of requesting information and documents unrelated to the issues of verification and the period under review
Tax officials have the right to access the software and information systems The taxpayer is obliged to provide information (documentation) both on electronic and paper media but only related to the subject of verification the issues under investigation, and the period under review The Tax Code does not provide for the right of tax officials to seize the software and information systems themselves due to the regulation of these relationships by the criminal legislation of the Republic of Kazakhstan
An examination by officials of the tax authority of property that is an object of taxation and /or an object related to taxation is possible within the framework of an appointed tax audit i.e. if the tax authority has a prescription and with the participation of witnesses which follows from the norm of subparagraph 3) of paragraph 1 of Article 71 of the Tax Code
The right to determine objects of taxation and/or objects related to taxation by an indirect method may be exercised by tax officials in cases where the taxpayer has lost accounting documents or violated the accounting procedure Indirect methods are understood as determining the amounts of taxes and other mandatory payments to the budget based on an assessment of assets liabilities turnover expenses as well as an assessment of other taxable items and/or tax-related items accepted to calculate a tax liability for a specific tax and other mandatory payment to the budget
The list of rights of tax officials when conducting a tax audit as set out in paragraph 1 of the commented article is not exhaustive
In accordance with the legislation of the Republic of Kazakhstan on administrative procedures, the duties of a state body are understood as a range of actions that must be performed by a state body A State body represented by its officials cannot refuse and/or fail to perform the duties assigned to it
Violation
by tax officials of their duties to respect the rights and legitimate interests of the person being audited and to prevent unlawful decisions and actions (inaction) from harming the person being audited, entails liability for such officials for violating the procedure for conducting an audit
In accordance with paragraph 1 of Article 322 of the Business Code, illegal actions of government officials during inspections entail the responsibility of officials established by the laws of the Republic of Kazakhstan Violation of the procedure for conducting inspections of private business entities is the basis for bringing tax officials to administrative responsibility in accordance with the provisions of Article 175 of the Administrative Code
The damage caused to a business entity by a state body or its official during the exercise of state control and supervision is subject to compensation in accordance with the civil legislation of the Republic of Kazakhstan which is established by the norms of paragraph 2 of Article 322 of the Entrepreneurial Code
Gross violations of the audit procedure including tax audits committed by government officials and provided for in article 156 of the Business Code are independent grounds for invalidating the audit results
The duties of tax authorities to ensure the safety of documents received and compiled during a tax audit not to disclose their contents to observe official ethics to inform the person being audited about his rights and obligations to present instructions and official certificates during the audit are aimed at ensuring the rights and legitimate interests of the person being audited including in order to ensure his right to appeal against decisions actions (omissions) of the tax authority
When
conducting a tax audit, the tax authorities are obliged not to violate the established working hours of the person being audited This obligation established by the Tax Code for conducting tax audits corresponds to the norm of subparagraph 3) of paragraph 3 of Article 154 of the Business Code which establishes the duty of officials of control and supervision bodies not to interfere with the established mode of operation of subjects (objects) of control and supervision during the audit