On taxes and other obligatory payments to the budget (Tax Code)

Article 159. Decision made pursuant to a tax audit

1. A tax authority draws up a tax audit report to be sent (delivered) to a taxpayer (tax agent) in accordance with the procedure and within the time limits set forth in Articles 114 and 115 of this Code if, as a result of a tax audit, violations have been revealed that factor into the calculation of taxes and payments to the budget, the reduction of losses, failure to confirm the refund of excess VAT amount and (or) corporate (individual) income tax withheld at the source of payment from non-residents’ income.

2. A tax authority assigns the same registration number both to the tax audit report and the tax audit act.

3. A tax audit report shall contain the following details and information:

1) the date and registration number of a tax audit report and a tax audit act;

2) the last name, first name, patronymic (if it is indicated in an identity document) or full name of the taxpayer (tax agent);

3) identification number of a taxpayer (tax agent);

4) the amount of assessed taxes and payments to the budget, social welfare payments and penalty;

5) the amount of reduced losses;

6) excess VAT amount not confirmed for refund;

7) the amount of the corporate (individual) income tax, withheld at the source of payment from non-residents’ income, not confirmed for refund;

8) the demand for payment and deadline for it;

9) details of relevant taxes and payments to the budget and penalty;

10) the time and place of appeal.

4. If a tax audit is carried out as part of a pre-trial investigation, an audit findings report with respect to a taxpayer under pre-trial investigation shall be drawn up after completion of the criminal case.

In this case, an audit findings report shall be issued and delivered to the taxpayer within five business days from the receipt of an official document confirming the completion of the criminal case.

5. An audit findings report shall be delivered to a taxpayer (tax agent) by hand against signature or sent by registered mail with return receipt. The audit findings report sent by registered mail with return receipt is considered to be delivered to the taxpayer (tax agent) on the date of the taxpayer’s (tax agent’s) note of receipt in the notification of a postal or other communications organization, unless otherwise specified in this article.

6. In case of return by a postal or other communications organization of audit findings reports sent by tax authorities to a taxpayer (tax agent) by registered mail with return receipt, the date of delivery of such reports is that of:

1) conducting a tax inspection with the involvement of witnesses on the grounds and in accordance with the procedure established by this Code;

2) the return of such a letter by a postal or other communications organization – if a tax audit act has been delivered pursuant to a tax inspection act in accordance with paragraph 3 of Article 158 of this Code.

7. A taxpayer (tax agent) that received an audit findings report is obliged to execute it within the time limits established in the report, if he has not appealed against audit findings.

8. If a taxpayer (tax agent) agrees with assessed amounts of taxes, payments to the budget and (or) penalty specified in an audit findings report, the time limits for fulfillment of the tax obligation to pay taxes, payments to the budget and also obligations to pay penalty may to be extended by sixty business days upon a taxpayer’s (tax agent’s) application submitted along with an attached payment schedule, unless otherwise specified in Article 51 of this Code.

At the same time, the specified amount is payable to the budget together with penalties accrued for each day of extension of the payment period and shall be paid in equal installments every fifteen business days within the specified period.

The deadline for the fulfillment of a tax obligation in accordance with the procedure established by this paragraph is not subject to extension if it is an obligation:

for the payment of amounts of excise duties and taxes withheld at the source of payment assessed as a result of an audit;

for the payment of assessed amounts of taxes, payments to the budget and penalties as a result of an audit conducted pursuant to an appeal against audit findings.

9. The amount of obligations specified in paragraph 7 of Article 158 of this Code is indicated in a notification of assessed taxes, payments to the budget and social welfare payments for the period running from the date of filing liquidation tax returns until the date of completion of a liquidation tax audit, which is sent to the taxpayer in accordance with the procedure set forth in Article 115 of this Code.

10. If, during an unscheduled tax audit, except for thematic audits specified in subparagraphs 8) and 11) of paragraph 1 of Article 142 of this Code, a tax authority has revealed a taxpayer’s (tax agent’s) violation of the tax legislation of the Republic of Kazakhstan for the same taxable period on the same issue, which was not revealed during any of the previous tax audits, no proceeding in a case concerning an administrative offence may be initiated in relation to this taxpayer, and the one that has been initiated shall be terminated.

The provisions of this paragraph do not apply to violations of the tax legislation of the Republic of Kazakhstan, which were revealed:

1) with regard to the taxpayer’s (tax agent’s) reduction of the amount of a tax or payment to the budget by filing additional tax returns for an earlier audited taxable period for this type of tax or payment;

2) as a result of a reply to a tax authority’s inquiry in the course of any of the previous tax audits of the same taxable period, if the reply was received after the completion of such an audit;

3) as a result of consideration of documents affecting the amount of a tax or payment to the budget and not submitted by a taxpayer (tax agent) upon a tax authority’s written request in the course of any of the previous tax audits of the same taxable period for this type of tax or payment;

4) with regard to an action (actions), committed with a private business entity, on the issuance of an invoice without actual performance of works, rendering of services, shipment of goods, after the entry into legal force of a court judgment or decision if a tax authority receives information on such an action (actions) for the first time after the completion of any of the previous tax audits of the taxable period, in which such an action (actions) was (were) committed.
Clause 3. Identification of taxable and (or) tax-related items in individual cases, also by indirect method