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

Article 131. Horizontal monitoring

1. Horizontal monitoring stipulate the exchange of information and documents between an authorized agency and a taxpayer, which shall be based on the principles of:

cooperation;

sound trust;

legality;

transparency

extended information interaction.

The horizontal monitoring agreement form shall be established by the authorized agency.

2. Horizontal monitoring shall be carried out from January 1 of the year following the year of conclusion of the horizontal monitoring agreement, and is valid for three years with the possibility of extension.

In this case, the procedure for concluding and terminating the horizontal monitoring agreement, as well as the categories of taxpayers with whom the horizontal monitoring agreement is concluded shall be established by the authorized agency.

Taxpayers subject to horizontal monitoring from January 1 of the year following the year of conclusion of the horizontal monitoring agreement shall not be taxpayers subject to monitoring by large taxpayers.

3. Proceedings in the case of an administrative offense for violation by a taxpayer of the tax legislation of the Republic of Kazakhstan cannot be started, and started shall be terminated when the fact of such violation is established based on the results:

1) horizontal monitoring while observing the following conditions:

the consent of a taxpayer, that in the horizontal monitoring, with notification of the results of horizontal monitoring;

the absence of the fact of judicial appeal against the notification on the results of horizontal monitoring;

2) a tax audit for the period the taxpayer in horizontal monitoring.