3rd year student of the law faculty

of the Kazakh National Al-Farabi University

Paymon Sanavbar

Supervisor: Bakhytzhan Kalymbek

Legal regulation of E-commerce on the stage of establishing in the Republic of Kazakhstan

Respectively not very long ago, a traditional commodity trade competed quite successfully with its “younger sister” - E-commerce. More and more people do shopping in the Internet stores, starting from garment accessories for handicraft up to the furniture. In the nearest past, people purchased goods through the Internet apprehensively, and nowadays it is difficult to find a man who do not use online shopping. The operation quantity indicators in this sphere of trade are growing incredibly fast, and it exerts more influence on the global economy.

E- commerce contributed to the occurrence of new created jobs, helping sellers and buyers to dispose their time more rationally.

However, selling something is not simple. Particularly in the niches, where competitors spend thousands tenge for promotion, advertising and the bribery of customers. Nevertheless, if not to follow the crowd and go your own way, to become a leader is quite realistic.

But on the other hand, e-commerce is the scope for fraudsters. At the same time, there are crowds of fraudsters together with well-known and successful projects. An online store can be created by any child of school age. It follows thence that people on the other side of the monitor are not sure whether the store exists in reality or not, and it is problematic enough to check it. In order to choose the goods of interest to us, we enter a shop “virtually” and, of course, we do not know whether specified goods exists in reality, as well as to what extent the declared characteristics and photographs quadrate to facts, although the article 6 of the Law of the Republic of Kazakhstan dated December 19, 2003 “On advertising” regulates that advertising should be accurate regardless of the form or the means of distribution and placement used. When purchasing goods through the Internet full or partial prepayment is often supposed, as a rule, payment systems are involved, payments are made with the help of electronic money, which became widespread in this sphere, regulated by the Law of RK "On payments and payment systems" dated 26 July 2016.

It turns out that all transferred funds fall within the circumstance of a store owner, who, having received the prepayment, may just not send goods, or send goods of low quality or another type.

In January 2017, new amendments to the Law "On payments and payment systems" will be introduced, according to these amendments, any transfer of money will be registered in the state, that will be one of the obstacles to the fraudulent activities of criminals.

And then the fun begins – there is no written contract between the store and the customer, there is no cash register receipt or other proof of purchase - if any thing goes wrong, it will be difficult to defend the rights in court (or impossible). And with these amendments in the law, it will be easier for defrauded purchasers to return the money back.

Today fraudulence is the most common crime on the Internet. Decoying customers, some online stores create virtual not only storefronts, but also prices, and, sometimes, the goods themselves! It is good, when the online stores have an alternative in the form of boutiques, and the electronic page is a kind of storefront for familiarization with the goods.

It is often possible to find legally unsupported announcements like “goods are not subjected to exchange and return” on the Internet, potential buyers silently accept these terms and conditions, because the population is legally illiterate and does not know about own rights and liabilities, specified in the law “On Protection of Consumers' Rights”, in particular in the Article 7 of the aforementioned law, which states that consumers have the right to:

1) free conclusion of an agreement for purchase of goods (execution of works, rendering of services); 
2) information access in the sphere of consumers protection; 
3) obtaining the information about goods (works, services), as well as about a seller (a manufacturer, an executor); 
4) purchase of safe goods (works, services); 
5) free choice of goods (works, services);
6) proper quality of goods (works, services); 
7) exchange or return of goods of proper or of low quality; 
8) compensation of material losses (damages) in full, caused to their life, health and (or) property due to defects in the goods (works, services); 
9) getting a document from a seller(a manufacturer, an executor), affirming the purchase of goods (execution of works, rendering of services); 
10) submission of a claim to an originator (an organizer) of games on the quality of goods (works, services), delivered (performed, provided) in the form of a prize;
11) establishing public associations of customers; 
12) compensation of non-pecuniary damage; 
13) protection of rights and legitimate interests; 
14) exercising of other rights, provided by the present law and the other laws of the Republic of Kazakhstan.

Besides, I propose to introduce at the legislative level money sanctions for the distribution of information, which is out of line with the legislation, as an example of that is mentioned above, namely, derogatory to the rights of customers.

Likewise, I propose to introduce a unified register in the state, which will be able to disclose the information about judicially registered Internet-stores, so that to give customers guarantees not to be defrauded. In the given register, a potential buyer will be able to verify independently if an Internet- store appears to be real or it is a next fraudulent structure. The entrepreneurs’ data and the references to the Internet-stores, should be in free access for residents and visitors of Kazakhstan.

Many first-time entrepreneurs, who do not know the legislation, are frighten of the word “taxes”, that is why they go into fly-by-night business, inflicting in so doing damage as to the state as to themselves. To implement preferences, namely, for the first-time entrepreneurs, in the form of 1-year tax exemption, to simplify financial reporting for the Internet-stores, so that they can send their reports in electronic format. Wherethrough the payment of judicially established taxes, fiscal charges and other compulsory payments appears to be a duty and a responsibility of everyone. For the commitment of tax violation such sanctions as a fine and a penalty tax are applied to a violator in compliance with the Tax code, as well as the measures of administrative or criminal responsibility. Criminal responsibility falls due in case of taxes evasion and (or) other obligatory payments to the budget from the organizations committed through the non-presentation of a declaration, whereas the presentation of a declaration is mandatory, or the inclusion into the declaration knowingly damaged data about the income and (or) expenses, by hiding others objects of taxation and (or) other mandatory payments, if this act entailed non-payment of taxes and (or) mandatory payments on a large size. A large amount is admitted to be a sum of unpaid taxes and compulsory payments into the budget, exceeding 2000 MCI.

If the violations of the tax laws do not entail a criminal responsibility, there comes a financial and legal or administrative responsibility, the ground for which is an administrative violation (offence), i.e. tax offenses which are illegitime guilty (intended or unadvised) activities (actions or inactions) offending the state order of establishment, payment and taxation, for which the administrative responsibility is specified. The measure of punishment appears to be special pecuniary sanctions, fines and a penalty tax. The grounds of administrative responsibility in the field of taxation is an act that contains all the features of the offense under Chapter 16 of the Administrative Code of the Republic of Kazakhstan. At the same time, according to the Tax Code, in tax evasion, tax authorities are entitled to apply methods to ensure the fulfillment of tax obligations and to collect a taxpayer's (tax agent’s, an operator’s) tax debt by force, and, at the same time, to inform him/her about it, except for having a tax debt in the amount of at least 6 times of a monthly calculation index, established by the law on the national budget and applicable as of January 1 of the corresponding tax year. Thus, a penalty is charged for tax evasion, the amount of penalty is charged and paid independently of other methods of exercising the tax responsibility and measures of forced collection, not executed in time a tax responsibility and measures of forced collection, as well as the other measures of responsibility for violation of tax legislation of the Republic of Kazakhstan, the operations on bank accounts and checkout of a debtor's property to the taxpayer are constrained at the disposal.

In default of payment or incomplete payment of taxes payable sum after the described above methods ensuring the execution of exceed the allotted time tax liability, a taxation body levies invitum with the bank account of a taxpayer (a tax agent), within the formed taxes payable, takes recourse upon money on a bank account of third parties, involved in debt in front of a taxpayer, without his//her consent to decern the execution upon limited at one's disposal property of a taxpayer (a tax agent), in case of nonredemption by a taxpayer (a tax agent) of taxes payable sum after accepting all the methods and measures, provided by the tax code, a taxation body has a right to assume measures on his/her recognition as a bankrupt according to the legislative acts of the Republic of Kazakhstan.

On the part of the state, various forums on enlightenment of rights and liabilities of first-time entrepreneurs should be carried out, so that the last-mentioned should work officially and have legal income.