Analytical report on the internal analysis of corruption risks in the SRC of the Ministry of Finance of the Republic of Kazakhstan
Internal analysis of corruption risks in the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (hereinafter referred to as the Committee) and its territorial divisions was conducted in accordance with the Constitution of the Republic of Kazakhstan, the Law "On Combating Corruption", Standard Rules for Conducting Internal Analysis of Corruption Risks approved by the order of the Chairman of the Agency of the Republic of Kazakhstan for Civil Service Affairs and Anti-Corruption dated 19 October 2016 No. 12, Methodological recommendations for conducting internal analysis of corruption risks dated April 7, 2021, orders of the Committee dated March 18, 2022 No. 151-PR-KGD "On some issues of internal analysis of corruption risks in the activities of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan".
Internal analysis of corruption risks, including those carried out taking into account proposals (problematic issues) "Atameken" NCE, representations of the prosecutor's office, and sentences of criminal courts.
According to the results of the analysis, 29 corruption risks were identified.
1.1. Name of corruption risk
Non-automated risk profiles
Description of corruption risk
Currently, the procedure for performing customs operations and releasing goods before submitting a declaration for goods is not automated. Customs control within the framework of the RMS is carried out on the basis of non-automated risk profiles (in hard copies), a report on such actions is also conducted manually, which may entail unlawful interference by officials.
Recommendations for eliminating the risk:
Implementation of automated risk assessment (RMS) when submitting an application for the release of goods before submitting a declaration for goods. Protocol on the implementation of automated risk profiles in "ASTANA-1" Information System.
1.2. Name of corruption risk
The non-automated component in "ASTANA-1" IS "Document of storage of goods".
Description of corruption risk
Currently, the placement of goods in temporary storage places, its actual placement and untimely delivery of goods before the actual release of the declaration for goods is carried out without automation, which makes it possible for officials to issue goods from the customs without customs clearance, for late submission of declarations to withdraw from administrative responsibility of the Ministry of Internal Affairs.
Recommendations for eliminating the risk:
Modification of the module "Document of storage of goods" (DSG), in part:
- creation of a DSG without registration of a transit declaration;
- applications in one DT of goods for 2 or more DSGs;
- accounting of the detained goods, as well as linking the DSG and DT to the EC TD at the end of customs transit;
- control of the deadlines for filing a declaration for goods and fixing signs of administrative offenses related to violation of such deadlines.
The act of commissioning.
1.3. Name of corruption risk
Contact between an SRA employee and an individual when submitting a passenger customs declaration.
Description of corruption risk
Currently, the submission of a passenger customs declaration is made on paper directly to an official of the State Revenue Authority (SRA).
Recommendations for eliminating the risk:
Submission of a passenger customs declaration by an individual via a mobile application. The act of commissioning.
1.4. Name of corruption risk
Discretionary powers on the part of SRA employees in determining the persons being checked.
Description of corruption risk
Currently, there is a human factor when choosing the object of the persons being checked.
Recommendations for eliminating the risk:
Updating of the criteria of the degree of risk intended for the selection of the inspected persons in order to appoint complex on-site customs inspections. Implementation of system mechanisms for decision-making by making changes to the Order of the SRC of the Ministry of Finance of the Republic of Kazakhstan dated May 19, 2021 No. 277-DSP.
It is necessary to carry out work on the construction of a model using mathematical modeling and the application of a rating scale to the probability transformed into a score by updating the criteria of the degree of risk intended for the selection of the audited persons in order to assign complex on-site customs inspections.
1.5. Name of corruption risk
Correction of the declaration for goods by officials.
Description of corruption risk
Currently, there is a human factor when deciding on the adjustment of the declaration for goods, including the HS code.
Recommendations for eliminating the risk:
1.6. Name of corruption risk
The contact of the SRA employee with the carrier at the checkpoint.
Description of corruption risk
Acceleration at the intersection of vehicles at the checkpoint for exit to the adjacent side.
Recommendations for eliminating the risk:
Improvement of the electronic queue system at "Nur Zholy" checkpoint of the State Revenues Department in the Almaty region:
- launch of a pilot project to organize an electronic queue on the new "e-Border" platform;
- revision of the electronic queue and approval of the list of MVs to be excluded from the queue system (MVs with no transportation contracts, do not meet the objectives of cargo transportation and with duplicate State Registration Numbers).
1.7. Name of corruption risk
Submission by carriers to the SRA of forged permits or movement without permits.
Description of corruption risk
The possibility of acceptance by an official from the Ministry of Internal Affairs of forged documents at the checkpoint during transport control.
Recommendations for eliminating the risk:
Refinement of "ASTANA-1" IS in terms of integration with the information system "Transport Database" of the Transport Committee of the Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan in order to carry out transport control at checkpoints and send/receive information to/from the Transport Committee of the MIID RK. The act of commissioning.
1.8. Name of corruption risk
Submission of forged certificates of conformity by the authorized bodies for confirmation of compliance of the EAEU member states during customs control to the Ministry of Internal Affairs.
Description of corruption risk
The possibility of acceptance by an official from the Ministry of Internal Affairs of forged certificates during customs control
Recommendations for eliminating the risk:
It is necessary to integrate "ASTANA-1" IS with the unified register of certificates of conformity of the EAEU in order to automatically verify the authenticity of certificates of conformity during customs clearance of goods.
1.9. Name of corruption risk
Submission by carriers of forged shipping documents at the checkpoint at the end of the customs transit procedure without the actual movement of goods and vehicles.
Description of corruption risk
The possibility of acceptance by an official at the checkpoint of forged shipping documents at the end of the customs transit procedure without the actual movement of goods and vehicles.
The contact of the SRA employee with the UFEA during the control of the actual export of transit goods, the creation of conditions for false transit.
Recommendations for eliminating the risk:
Ensuring control over the transportation and integrity of goods during the transit movement of goods through the territory of the Republic of Kazakhstan, by establishing a communication and tracking system for goods and vehicles during the customs transit procedure through the territory of the Republic of Kazakhstan.
1.10. Name of corruption risk
The absence in "ASTANA-1" IS of the function for the formation of the UFEA electronic notification of the placement of goods in the customs control zone, in order to provide undeclared or updated information by changing (supplementing) the information stated in the EDG at PD, or notification of the absence of the need to make such changes (additions) to the DG.
Description of corruption risk
The contact of the SRA employee with the Internal Affairs Department during the control of goods located in the customs control zones.
Recommendations for eliminating the risk:
It is necessary to implement in "ASTANA-1" IS the possibility of forming an electronic notification of the placement of goods in the customs control zone, necessary for the submission of undeclared or updated information by changing (supplementing) the information stated in the EDG at PD, or notification of the absence of the need to make such changes (additions) to the DG.
This electronic notification of the placement of goods in the customs control zone will facilitate the control over the submission of undeclared or updated information to the Internal Affairs Department by changing (supplementing) the information stated in the EDG at the PD, or notifying that there is no need to make such changes (additions) to the DG.
1.11. Name of corruption risk
Contact of the SRA official with the UFEA during customs inspection.
Description of corruption risk
During customs inspection by customs representatives, attempts may be made to persuade the official carrying out the inspection to illegal actions in order to reduce the Customs duties and taxes (CD&T) or evade the payment of CD&T, as well as to evade criminal and administrative responsibility.
Recommendations for eliminating the risk:
Currently, in order to reduce corruption risks during customs inspections, the practice of using video recorders, as well as video cameras to record the process of customs inspection, has been introduced.
At the same time, in order to automate the entire process of customs inspections, it is necessary to introduce the use of electronic tablets, develop and implement the module "Electronic Act of Customs Examination (inspection)" in "ASTANA-1" IS, as well as integrate data transmission from electronic tablets into "ASTANA-1" IS in online mode.
1.12. Name of corruption risk
The non-automated process of checking the weight and overall parameters of motor vehicles (hereinafter - MV).
Description of corruption risk
The SRA officials at checkpoints carry out transport control at the customs border. Currently, the actual weight and overall parameters of the MV are checked manually.
This circumstance creates prerequisites for off-duty contacts of MV drivers with SRA employees in order to conceal violations (weight, dimensions of the MV, etc.).
Recommendations for eliminating the risk:
Equip checkpoints on the Kazakhstan section of the customs border of the EAEU with automated control and measuring equipment.
To check the weight and overall parameters of the MV using an automated system for determining the weight and overall parameters of the MV and video surveillance, with further preservation of the results of the weight and overall parameters of the MV in the database without the participation of an official of the SRA.
1.13. Name of corruption risk
The possibility of "manual" distribution by the management of customs posts of declarations for goods between employees. This circumstance creates corruption prerequisites for off-duty contacts of declarants with employees of the SRA in order to accelerate the customs clearance of goods, or to provide other assistance.
Description of corruption risk
There are facts when declarations for goods of the same UFEA are distributed to one inspector for a long time.
For example, the head of the customs post sends declarations for goods of a large company with a large number of names of goods to Akhmetov A., and to Ivanov I. he sends declarations for goods with 1 name of goods.
This circumstance creates prerequisites for off-duty contacts, in order to speed up customs clearance, the declarant benefits from interaction with only one SRA employee, taking into account previously established ties.
Recommendations for eliminating the risk:
It is necessary to make changes and additions to the existing regulatory legal acts or to develop an order providing for the grounds for the distribution of DG by managers and their deputies among specialists (a specialist on sick leave, on vacation).
1.14. Name of corruption risk
The possibility of repeated making decisions by the SRA employees on declarations for goods without fixing the initial and subsequent decisions in the information system.
Description of corruption risk
Currently, officials of the customs SRA make decisions on amendments and information stated in the declaration for goods on paper and attach it to "ASTANA-1" IS. At the same time, it is possible to change the submitted decision by deleting the file from the IS and attach a new decision.
Recommendations for eliminating the risk:
It is necessary to finalize "ASTANA-1" Information System in terms of the physical removal by an official of the decision to make changes and information declared in the goods declaration for the possibility of viewing the previous decisions made.
1.15. Name of corruption risk
Contact of the service recipient and the service provider
Description of corruption risk
Currently, the following customs services are provided on paper, including in terms of submitting applications, the decision on inclusion in the customs register is made by order, notifications are sent on paper and the application process is carried out manually:
Accordingly, there is a possibility of contact between the service recipient and the service provider, which can lead to corruption.
Recommendations for eliminating the risk:
It is necessary to automate these public services.
1.16. Name of corruption risk
The possibility of correcting the declaration of goods in "ASTANA-1" IS.
Description of corruption risk
The inspections carried out by the Department of Departmental Control of the SRC established corruption risks during the implementation of the customs clearance procedure.
An employee of the post - customs control unit before the release of goods into free circulation has the technical ability to adjust declarations, as a result, the classification of goods (HS code) is changed with a corresponding underestimation of the CD&T.
Recommendations for eliminating the risk:
When transferring an official to another structural subdivision of the Department, it is necessary to coordinate with the Information Security Department to block their roles in "ASTANA-1" information system according to the new functional duties of the employee and further exclude similar cases in the future.
The departments of internal investigations locally need to monitor the roles of users in the information systems of the SRA according to their functional responsibilities. If such cases are found, it is necessary to take measures together with the UIB to block roles.
1.17. Name of corruption risk
The anti-corruption monitoring conducted by the Department of Departmental Control of the SRC established corruption risks when canceling declarations for goods after the release of goods.
Description of corruption risk
The practice of unlawful cancellation of declarations for goods after the release of goods with a reduction and/or refund of the paid CD&T is widely used.
Recommendations for eliminating the risk:
It is necessary to develop and approve an order regulating coordination with the relevant department of the Committee for the cancellation of the DG in "ASTANA-1" IS, while the cancellation must be made solely on the basis of a reasoned appeal from the Department of Internal Affairs, an employee of the Department and the results of verification of documents and information.
1.18. Name of corruption risk
Unlawful issuance of an opinion by an official of the SRA on
non-confirmation of violations by notifications sent to taxpayers.
Description of corruption risk
According to the results of the Tax Form analysis, a notification is sent to the address of the business entity on the elimination of violations identified by the results of desk control in terms of unjustified electronic invoice statements for the tax period. Subsequently, the SRA makes a decision not to confirm the fact of issuing fictitious electronic invoices.
At the same time, according to previously sent notifications, there is an evidentiary documentary base on the absence of a VAT payer at the location, on the non-involvement of a formally issued manager in the implementation of the Economic Activity of a legal entity or sole proprietor (acts of tax inspection, explanation, and etc.).
Recommendations for eliminating the risk:
In order to exclude the human factor, at the selective discretion of the SRA employee, attaching the evidence base as an explanation, when forming a notification and making a decision on it, it is necessary to finalize the SRA information system in terms of BIN/IIN binding to previously sent notifications and responses received to them with the possibility of viewing the history of the notification.
1.19. Name of corruption risk
The possibility of conducting thematic tax audits on the availability of accompanying invoices for goods and compliance of the name, quantity (volume) of goods with the information specified in the accompanying invoices for goods, without photo and video recording.
Description of corruption risk
Currently, there is no possibility of conducting thematic inspections with photo and video recording, which predisposes to the commission of corrupt actions on the part of an SRA official.
Recommendations for eliminating the risk:
It is necessary to provide video recorders for employees carrying out thematic checks on the availability of accompanying invoices for goods and compliance of the name, quantity (volume) of goods with the information specified in the accompanying invoices for goods.
The use of video recorders will minimize corruption risks, both on the part of officials, and on the part of importers and carriers.
1.20. Name of corruption risk
Non-automated notification within the framework of desk control for non-submission of an application for the import of goods and payment of indirect taxes when importing goods from the EAEU countries.
Description of corruption risk
When comparing the information received from the State Border of the Republic of Kazakhstan (Export Control Module) with applications for the import of goods and payment of indirect taxes when importing goods from the EAEU countries (TF 328.00), a list of taxpayers who have not submitted TF 328.00 is formed to issue a notification on the elimination of violations identified by the results of desk control.
Currently, Notifications are generated manually, which allows the SRA employees of the territorial divisions to independently decide on the number and amount of discrepancies.
Recommendations for eliminating the risk:
It is necessary to automate the process of issuing notifications in the information system.
1.21. Name of corruption risk
The contact of the SRA official and the taxpayer when working out the notification of the elimination of violations based on the results of desk control, due to the lack of electronic feedback.
Description of corruption risk
The decision on recognition of the notification of elimination of violations is formed only once in the system of "Unified Data Repository" Information System, that is, in the case of repeated submission of the Tax Form or explanation within the notification, the decision will not be formed again in electronic form, respectively, the taxpayer is not properly informed about the stage of execution of the notification.
In case of non-fulfillment within the prescribed period of notification of elimination of violations identified by the tax authorities based on the results of desk control, entails suspension of expenditure transactions on the taxpayer's bank accounts.
Recommendations for eliminating the risk:
Automation of multiple decision-making on the recognition of a notification based on the results of desk control not executed in "ISNA" IS with the preservation of history.
1.22. Name of corruption risk
Non-automated recall of the Bank Account Debit Transactions (BADT) on the notifications of desk control.
Description of corruption risk
This process is partially automated in the UDR IS (hereinafter referred to as the UDR), that is, when confirming the fact of execution, the SRA specialist (hereinafter referred to as the Specialist) presses the "withdraw BADT" button, subsequently all actions (referrals to the bank, etc.) occur automatically in the UNIS.
The withdrawal of the BADT will be carried out automatically in the presence of a signed Conclusion on confirmation and (or) non-confirmation of the results of desk control.
Recommendations for eliminating the risk:
It is necessary to automate the recall of the BADT on executed notifications of desk control, after drawing up a conclusion on confirmation and (or) non-confirmation of the results of desk control.
1.23. Name of corruption risk
The absence of the possibility of automatic closure of the account (suspension of BADT) after the expiration of the notification period in the UDR "BADT" system.
Description of corruption risk
Measures are taken for non-fulfillment of the notification of desk control, including suspension of expenditure operations.
This process is partially automated in the UDR IS (hereinafter referred to as the UDR), that is, when confirming the fact of non-execution, the SRA specialist (hereinafter referred to as the Specialist) presses the "Generate BADT" button, subsequently all actions (referrals to the bank, etc.) occur automatically in the UNIS.
To press the button "Generate BADT", the specialist needs to make sure that the taxpayer has eliminated the violation by checking his Additional Tax Form (ATF), explanation (documents). At the same time, the explanations (documents) submitted electronically are automatically embedded in the UDR, information about the ATF is available in the system in the form of the functional "number of submitted ATF".
When executed by the taxpayer on purpose on paper, the specialist has to check for the presence of the presentation of explanations (documents) in the documentolog (hereinafter referred to as ODO), ATF in SONO IS.
Recommendations for eliminating the risk:
It is necessary to implement the technical possibility of automatic account closure (suspension of BADT) upon expiration of the notification execution period in the UDR "BADT" system.
2.1. Name of corruption risk
Making a decision by an official of the SRA on inclusion in customs registers and exclusion from them, as well as suspension of the activities of persons related to the provision of services as customs representatives, customs carriers, owners of temporary storage warehouses, owners of customs warehouses, owners of free warehouses and owners of duty-free shops.
Description of corruption risk
In accordance with the provisions of the Code of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan" regulating the activities of persons in the field of customs affairs, the conditions for inclusion in customs registers and cases of exclusion from them, suspension and resumption of the activities of persons, including in connection with the involvement of the head of the company on the facts of actions related to the receipt/by giving a bribe, with the exception of mediation in bribery.
As practice shows, in some cases, business representatives enter into corrupt relations with representatives of customs authorities in order to speed up customs formalities.
There are examples when the role of professional intermediaries in bribery is assumed by the above-mentioned persons engaged in activities in the field of customs.
Recommendations for eliminating the risk:
In order to exclude corruption risks in terms of early identification of persons engaged in activities in the field of customs with a corrupt, criminal past, it is necessary to amend the articles 489, 491, 492, 496, 498, 499, 503, 505, 506, 510, 512, 513, 517, 519, 520, 524, 526 527 of the Code, in terms of tightening the grounds for inclusion in and exclusion from customs registers, as well as suspension of activities.
2.2. Name of corruption risk
Making a decision by an SRA employee on the exclusion of authorized economic operators (hereinafter referred to as AEO) from the AEO register.
Description of corruption risk
Paragraph 8 of Article 534 of the Code stipulates that the authorized body, no later than 10 working days from the date of occurrence of the grounds provided for in paragraph 7 of Article 534, or receipt of information about them, decides to exclude AEO from the register of authorized economic operators.
The SRA official has the opportunity to make a decision on the exclusion of AEO from the register within 10 days and in case of elimination of violations committed during this period of AEO, the SRA official may give preference in favor of AEO and not exclude it from the register, and exclusion from the AEO register entails 1 year loss of AEO status.
Recommendations for eliminating the risk:
To exclude corruption risks when making a decision by an SRA official to exclude AEO from the register, it is necessary to amend paragraph 8 of Article 534 of the Code in terms of reducing the period from 10 working days to 5 working days.
2.3. Name of corruption risk
The lack of regulation of the deadline for submitting documents during a tax audit, in cases where the taxpayer has documentation, entailing red tape and delaying the terms of the tax audit by the SRA officials, which leads to the expiration of the statute of limitations on the calculation of the amount of taxes and, accordingly, the loss of the budget.
Description of corruption risk
According to paragraphs 3-4) of paragraph 1 of Article 155 of the Tax Code of the Republic of Kazakhstan, when conducting a tax audit, tax authority officials have the right to request and receive accounting documentation on paper and electronic media, as well as access to automated databases (information systems) in accordance with the subject of the audit, to request and receive written explanations from the taxpayer, in including its employees, on issues arising during the tax audit.
At the same time, even if the taxpayer has the documents, the deadline for submitting them is thirty working days. In this connection, in order to simplify the procedure for submitting documents available to the taxpayer, it is necessary to shorten the submission time, which ultimately affects the overall timing of the audit.
Recommendations for eliminating the risk:
Amend articles 146, 149 (Note 1) of the Tax Code of the Republic of Kazakhstan regarding the regulation of the deadline for submission of documents during the audit, when the taxpayer has documentation.
These measures will allow eliminating red tape and delaying the timing of the tax audit by the SRA officials.
2.4. Name of corruption risk
The absence of direct norms in the Tax Code that allow excluding the costs of settlements with one-day firms without a verdict or invalidation of the transaction, which creates appeal disputes, and there are also corruption risks during tax audits.
Description of corruption risk
In practice, the analysis of conducted tax audits shows that in most cases taxpayers seek to optimize their tax liabilities in a dubious way.
The problem is the use of cashless firms for the purpose of tax evasion.
At the same time, the Tax Code of the Republic of Kazakhstan does not contain direct norms that allow excluding the costs of settlements with one-day firms without a verdict or invalidation of the transaction, which creates appeal disputes, and there are also corruption risks during tax audits.
The presentation of such charges during the control also causes complaints from bona fide taxpayers who have suffered as a result of accidental relationships with unscrupulous counterparties.
Recommendations for eliminating the risk:
In order to eliminate corruption risks and tighten measures against fictitious transactions, it is necessary to amend the articles 8, 13, 19, 30, 143, 155, 264, 403 of the Tax Code of the Republic of Kazakhstan, providing for the introduction of the principle of "due diligence" and granting the SRA the right to assess the actual implementation of financial and economic operations.
2.5. Name of corruption risk
The possibility of giving preference to the taxpayer when conducting a thematic audit and identifying the sale of alcoholic beverages by an SRA official below the minimum retail prices established by the Government of the Republic of Kazakhstan.
Description of corruption risk
The current version of the Code of the Republic of Kazakhstan "On Administrative Offenses" provides for administrative liability in case of violation of the retail sale of vodka and special, strong alcoholic beverages below the minimum retail prices established by the Government of the Republic of Kazakhstan.
Recommendations for eliminating the risk:
It is necessary to make additions to subparagraph 4 of paragraph 3 of Article 282 of the Code of the Republic of Kazakhstan "On Administrative Offenses" with the addition of the words "... vodka with a protected appellation of origin,....cognac and brandy below the minimum retail prices established by the Government of the Republic of Kazakhstan".
2.6. Name of corruption risk
When conducting a tax audit of excisable goods, the facts of the labeling requirements for tobacco products continue to take place to date.
Description of corruption risk
Subparagraph 1 of paragraph 12 of Article 1 of the Law of the Republic of Kazakhstan dated December 31, 2021 No. 100-VII of the Law of the RK "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Public Administration, improvement of the collateral policy of second-tier banks, regulation of Appraisal activities and enforcement proceedings" to the Law of the Republic of Kazakhstan dated June 12, 2003 "On the state regulation of the production and turnover of tobacco products" amendments have been made, according to which excise stamps are excluded and replaced with means of identification.
Recommendations for eliminating the risk:
It is necessary to amend Article 283 of the Code of the Republic of Kazakhstan "On Administrative Offenses" regarding the exclusion of excise stamps and their replacement by means of identification. This provision will eliminate corruption risks in terms of unjustified demands for excise stamps from taxpayers.
Head of the working group
on conducting internal analysis
of corruption risks A. Alibekov