Tax audits

Tax inspection is an examination conducted by tax authorities to ensure compliance with the tax legislation of the Republic of Kazakhstan.

Participants in tax inspections are the specified officials mentioned in the order and the taxpayer indicated in the order.

In cases where questions arise during the inspection that require specialized knowledge and skills, the tax authority has the right to involve a specialist possessing such expertise. In such cases, the specialist involved in the inspection prepares a conclusion on the issues raised, and this conclusion is attached to the inspection report.

Tax inspections are conducted in the following forms:

1. Comprehensive inspections;
2. Thematic inspections;
3. Counter inspections;
4. Timekeeping audits.

Also, tax inspections are classified into types: Periodic tax inspections, conducted according to a special procedure based on the assessment of the risk level, and unscheduled tax inspections.

The start of a tax inspection is considered the date of delivery of the prescription to the taxpayer. In case of refusal to receive the prescription, an act of refusal by the taxpayer (tax agent) to sign the prescription is drawn up. The date of drawing up the act is considered the start date of the inspection.

During the inspection, the officials of the tax authority conducting the tax inspection must present their official identification to the taxpayer.

The official hands over the original prescription to the taxpayer. The taxpayer signs the second copy of the prescription (acknowledgment of receipt and receipt of the prescription, date and time of receipt).

The tax legislation establishes deadlines for conducting tax inspections: The period for conducting a tax inspection specified in the prescription should not exceed thirty working days from the date of delivery of the prescription.

The period for conducting a tax inspection may be extended:

1. for legal entities without structural units, individual entrepreneurs, and non-residents conducting activities through permanent establishments with no more than one location in the Republic of Kazakhstan:

• by the tax authority appointing the tax inspection, up to forty-five working days;
• by the higher tax authority, up to sixty working days;

1. for legal entities with structural units, and non-residents conducting activities through permanent establishments with more than one location in the Republic of Kazakhstan, as well as for large taxpayers subject to monitoring:

• by the tax authority appointing the tax inspection, up to seventy-five working days;
• by the higher tax authority, up to one hundred eighty working days.

The authorized body or the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan may extend the period of tax inspection for taxpayers mentioned:

1. for legal entities without structural units, individual entrepreneurs, and non-residents conducting activities through permanent establishments with no more than one location in the Republic of Kazakhstan - up to sixty working days;
2. for legal entities with structural units, and non-residents conducting activities through permanent establishments with more than one location in the Republic of Kazakhstan, as well as for large taxpayers subject to monitoring - up to one hundred eighty working days.

The inspection period may be suspended for the period between the date of delivery of the requirement to provide information and documents to the taxpayer and the date of submission of the requested documents by the taxpayer. In case of failure by the taxpayer to provide documents or part of the documents upon the request of the tax authority during the tax inspection, the taxpayer is obliged to provide or restore the specified documents upon the demand of the tax authority, and an notice of suspension of the tax inspection is issued. The requirement of the tax authority must be fulfilled within 30 working days from the day following the day of delivery of the requirement.

The taxpayer who fails to provide the documents requested by the tax authority must explain in writing the reasons for not providing them. In this case, the tax authorities are also subject to administrative liability under Article 288 of the Code of Administrative Offenses for non-compliance with the requirements of the tax authority.

The inspection may also be suspended between the date of the tax authority's request to other government agencies, banks, and other organizations and the date of receipt of information and documents pursuant to the request.

The running time of the tax inspection is also suspended for the period between the date of the tax authority's request for information to foreign countries and the date of receipt of information by the tax authorities in accordance with international agreements.

In this case, the tax authority conducting the tax inspection is obliged to hand over to the taxpayer (tax agent) under signature or send by registered mail with notification an notice of suspension or resumption of the tax inspection no later than three working days from the date of suspension or resumption, with notification of the legal statistics authority.

The suspended period due to the delivery of the requirement for documents and information is not included in the term of the tax inspection:

1. for large taxpayers subject to monitoring;
2. conducted in connection with the liquidation of a resident legal entity, a structural unit of a non-resident legal entity, termination of activities by a non-resident legal entity through a permanent establishment, termination of activities by an individual entrepreneur;
3. thematic checks of legal entities on transfer pricing issues;

• thematic inspections to confirm the accuracy of the amounts of value-added tax submitted for refund;
• thematic inspections of tax agents on the issue of refunding personal income tax from the budget based on the tax application of a non-resident;
• thematic inspections on the consideration of a taxpayer's (tax agent's) complaint about the notification of the results of the inspection,

1. conducted on grounds provided for by the criminal procedural legislation of the Republic of Kazakhstan;
2. in case of sending a taxpayer (tax agent) a requirement of the tax authority to provide documents (information) during tax inspections;
3. in case of sending the taxpayer a preliminary act of tax inspection, as well as considering the taxpayer's written objection to the preliminary act by the tax authority.

The duration of documentary inspection, except for counter inspections, should not exceed:

1. for legal entities without structural units, individual entrepreneurs, and non-residents conducting activities through permanent establishments with no more than one location in the Republic of Kazakhstan - sixty working days;
2. for legal entities with structural units, and non-residents conducting activities through permanent establishments with more than one location in the Republic of Kazakhstan, as well as for taxpayers subject to monitoring - one hundred eighty working days; When conducting timekeeping audits, the period specified in the prescription cannot exceed 30 working days, and weekends and holidays may be included if the taxpayer operates on those days. Timekeeping audits may be conducted according to the taxpayer's working schedule regardless of the time of day.