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

Article 122. Collection of debts to the state budget from money held in bank accounts

1. In cases of non-payment or incomplete payment of tax debts by a taxpayer (tax agent), a tax authority takes actions of enforced collection of the amount of tax debts from bank accounts of a taxpayer (tax agent), that is a legal entity, classified in accordance with the risk management system to the category of:

major risk - after five working days from the date of delivery of notice on tax debt repayment;

average risk - after twenty working days from the date of delivery of notice on tax debt repayment.

2. Collection of an amount of tax debts from bank accounts of a taxpayer (tax agent) opened with a second-tier bank or an organization carrying out certain types of banking operations shall be effected on the basis of a collection order of a tax authority, except for the amount of money that is security for loans granted by such a second-tier bank or organization carrying out certain types of banking operations, which is equal to outstanding principal debt of this loan.

3. A tax authority issues a collection order on the basis of data on the amount of tax debts as of the date of the order.

4. In case a second-tier bank or an organization carrying out certain types of banking operations executes collection orders from one bank account of a taxpayer (tax agent), collection orders, issued in respect of other bank accounts of the taxpayer (tax agent) opened by him/her/it with this second-tier bank or organization carrying out certain types of banking operations, shall be returned unexecuted to a tax authority if such collection orders are issued on the same date, for the same amount, for the same type of debt.

5. If a second-tier bank or an organization carrying out certain types of banking operations fully executes a collection order by writing off the total amount, specified in such a collection order, from several bank accounts of a taxpayer (tax agent), collection orders, issued in respect of other bank accounts of the taxpayer (tax agent) opened by him/her/it with this second-tier bank or organization carrying out certain types of banking operations on the same date, for the same amount, for the same type of debt shall be returned unexecuted.

6. A collection order is issued in accordance with the form approved by the National Bank of the Republic of Kazakhstan and contains an indication of the bank account of a taxpayer (tax agent) from which tax debts are collected.

A tax authority sends a collection order to second-tier banks or organizations carrying out certain types of banking operations in hard copy or in electronic form via a telecommunications network. An electronic collection order is created in accordance with the formats established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan

7. If there is no money in a taxpayer’s (tax agent’s) national currency bank account, tax debts are collected from foreign currency bank accounts in the national currency pursuant to collection orders issued by tax authorities.

8. If there is sufficient money in a client’s account with a second-tier bank or an organization carrying out certain types of banking operations to satisfy all the claims made to the client, a collection order for tax debt collection is executed by a second-tier bank or an organization carrying out certain types of banking operations as a matter of priority and within one business day after the receipt of the said order, within the amount available in the bank account.

9. In case several claims are made to a client that is a taxpayer (tax agent) having no or insufficient money in bank accounts, a second-tier bank or an organization carrying out certain types of banking operations, as soon as money becomes available in such accounts, shall withdraw it to pay off the client’s tax debts in the order of priority established by the Civil Code of the Republic of Kazakhstan.

10. When closing a bank account of a taxpayer (tax agent), a second-tier bank or an organization carrying out certain types of banking operations, in accordance with the legislation of the Republic of Kazakhstan, returns the above said collection order to a relevant tax authority together with a notification of the closure of the bank account of the taxpayer (tax agent).

11. Collection orders shall be revoked by a tax authority within one business day after the payment of tax debts.

A tax authority sends a notification of revocation of a collection order to second-tier banks or organizations carrying out certain types of banking operations in hard copy or in electronic form via a telecommunications network. An electronic collection order is revoked in accordance with the formats established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan.