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

Article 70. Tax inspection

1. A tax inspection is another form of state control exercised by tax authorities in order to confirm the actual presence or absence of a taxpayer (tax agent).

A tax inspection is conducted during business hours at the location specified in the registration data of a taxpayer (tax agent).

The conduct of a tax inspection requires the involvement of witnesses in accordance with the procedure set forth in this Code.

2. A ground for conducting a tax inspection is:

1) impossibility to deliver a notice of a tax audit, an order, an opinion pursuant to an in-house audit, a preliminary tax audit act, a tax audit act, a decision on restricted disposal of property and (or) an inventory of restricted property to a taxpayer (tax agent);

2) the return by a postal or other communications organization of the notice provided for by subparagraphs 2), 3) and 7) of paragraph 2 of Article 114 of this Code, sent by a tax authority by registered mail with return receipt, due to the absence of a taxpayer (tax agent) at his/her/its location.

A tax inspection on the ground provided for by this subparagraph with respect to a taxpayer (tax agent) shall be conducted after the day on whichsuch a letter was returned by a postal or other communications organization.

The provisions of this subparagraph do not apply in the case provided for by paragraph 3 of Article 115 of this Code;

3) the need to confirm actual presence or absence of a taxpayer who is a VAT payer, in accordance with subparagraph 1) of paragraph 1 of Article 367 of this Code, at the location specified in the registration data.

The ground for conducting a tax inspection provided for by this subparagraph does not apply to taxpayers that suspended the filing of tax returns in accordance with the procedure set forthinArticles 213 and 214 of this Code, as well as taxpayers with respect to whom the bankruptcy procedure was applied;

4) the need to confirm actual presence or absence of a taxpayer that failed to comply with the notice provided for by subparagraph 10) of paragraph 2 of Article 114 of this Code, as well as a taxpayer recognized inactive in accordance with Article 91 of this Code.

3. Pursuant to a tax inspection, a tax inspection act is drawn up, which specifies:

the place, date and time of its drawing up;

the position, last name, first name and patronymic (if it is indicated in an identity document) of a tax authority official that issued the act;

the name of the tax authority;

the last name, first name and patronymic (if it is indicated in an identity document), the name and number of the identity document, the residential address of a witness;

thelast name, first name and patronymic (if it is indicated in an identity document) and (or) the name of the taxpayer, his/her/its identification number;

information on the results of the tax inspection.

A tax authority shall, within the day following that of drawing up a tax inspection act, which ascertains the absence of a taxpayer at the location specified in his/her/its registration data, place on the website of the authorized body information on such a taxpayer indicating his/her/its identification number, name or last name, first name, patronymic (if it is indicated in an identity document), the date of the tax inspection act.

4. In the event that a tax inspection conducted on the grounds specified in subparagraph 3) of paragraph 2 of this article ascertains actual absence of a taxpayer at the location specified in the registration data, a tax authority shall send a notification confirming the location (absence) of the taxpayer to such a taxpayer.

5. Within twenty business days from a tax authority’s sending the notification specified in paragraph 4 of this article, a taxpayer, without prior arrangement, is obliged to submit to the tax authority a written explanation of reasons of absence at the time of the tax inspection enclosing notarized copies of documents confirming the taxpayer’s location.

A document confirming the location of a taxpayer may be one of the following:

the one confirming the title to real estate (the right to use it);

written consent of a natural person owning real estate that was stated as the location of a taxpayer.

A time period between the dates of notarial certification of a copy of the document confirming the taxpayer’s location and its submission to a tax authority shall not exceed ten business days.

If a taxpayer fails to comply with the requirements specified in part one of this paragraph, a tax authority shall take one of the following actions:

1) suspend debit transactions in bank accounts of such a taxpayer in accordance with subparagraph 6) of paragraph 1 of Article 118 of this Code;

2) deregister forVAT in accordance with the procedure set forth in paragraph 4 of Article 85 of this Code, if such a taxpayer has no open bank accounts as of the deadline set forth in this paragraph for submitting a written explanation.

6. In the case specified in subparagraph 1) of part four of paragraph 5 of this article, a taxpayer, without prior arrangement, is obliged to submit to a tax authority a written explanation of reasons of absence at the place of location at the time of tax inspection, within five business days from the day of suspension of debit transactions in his/her/its bank accounts.

If a taxpayer fails to comply with the requirements set in part one of this paragraph, a tax authority shall deregister such a taxpayer forVAT in accordance with the procedure set forth in paragraph 4 of Article 85 of this Code.

Footnote. Article 70 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication).