Masters student Al-Farabi Kazakh
National University.Kazakhstan
Almaty
scientific adviser: Berdibaeva
Alia Kartbaevna
al-Farabi Kazakh
National University, Àssociated
professor, Law faculty
Some questions of tax administration in the Republic of Kazakhstan.
Abstract. This
article discusses the similarities and some of the features of the tax
administration in the Republic of Kazakhstan. The activities of the tax
authorities in tax administration aimed at ensuring full and timely collection
of taxes and duties in accordance with the laws of the Republic of Kazakhstan,
as well as the necessary controls and penalties against violators of tax
legislation. That is, the tax administration in its broadest sense is a tool,
which ultimately determines the success or failure of the tax, as well as the
overall fiscal and economic policy. In this connection, the article revealed
issues concerning the procedure of tax administration.
The
purpose of this article is to examine the state of enforcement of tax
obligations by tax control and tax administration issues of organization in
Kazakhstan, as well as ways of settling their generalization and
systematization.
Keywords:
Tax Administration, tax authorities, taxation, tax control, fiscal function,
tax audit, taxpayer, tax Service, Cash registers, tax liability.
To
the second half of the XX century the state techniques of impact on tax systems
became known for many countries of the West and Europe, and the defining role
in these techniques was played by components of formation of tax institutes as
till the specified period the insufficient attention in comparison with change
of structure of taxes was paid to this resource of increase of efficiency. The
concept of profit which needs of definition it was dictated by transition to
new system of managing demanded carrying out tax reforms for providing the
state of necessary revenues of the budget.
The
impossibility flexibly to reconstruct organizational structure of tax
authorities at emergence of the real tax problems caused by emergence of new
economic subjects leads to real losses of the budget. As confirmation to note
above the well-known problem of the short-lived firms which are existing from
balance to balance and not paying any taxes serves that in turn significantly
narrows taxable base. For the purpose of identification and suppression of
similar violations from these structures adoption of special decisions and
allocation of the organizational units focused on work with this way of evasion
from taxes is necessary. Similar organizational actions aren't provided, and
technologies of work with conscientious and unfair taxpayers are various and
demand creation for work with them various organizational structures.
Policy
guidelines and conceptual model of the taxation and tax administration in
gained recognition and an appreciation in Kazakhstan both at domestic and at
foreign experts today. Conventional is that fact that tax reform in Kazakhstan
is successfully realized and already yields the positive results. All subjects
of the political power at Kazakhstan have a clear understanding of goals, tasks
and ways of their decision. There are for this purpose at our state also all
necessary resources.
However
in practice on concrete affairs for achievement of the good purposes not
plausible means are often involved. The principle of expediency (“The end
justifies the means”) still dominates in work of local links of tax and
judicial authorities. Fiscal function of the taxation and the administrative
plan for taxation still eclipse themselves all constitutional values and
achievements of our state: natural human rights, property right, legality,
justice and justice. [1, page 7].
However
the main objectives on ensuring completeness of receipt of taxes and other
obligatory payments in the budget, completeness and timeliness of transfer of
obligatory pension contributions and social contributions to the State social
insurance fund, and also to implementation of tax control over execution by the
taxpayer of tax obligations are assigned to bodies of tax administration of the
Republic of Kazakhstan [2].
Tax
authorities process enormous volumes of information. New forms of tax
administration assume segmentation of taxpayers, allocation from their number
of certain groups, including largest enterprises. Considering considerable
influence of the largest taxpayers on formation of revenues of the budget and
their social importance for economy of regions as implementation of financial
and economic activity by large taxpayers in the conditions of an emerging
market and imperfection of legislative base allows construction by them various
multilevel vertically integrated schemes having the purpose concealment of true
tax base and leaving from payment of taxes and fees. During the work with this
category of taxpayers it is planned to apply the new methods of tax
administration including wide use of information technologies and resources.
In
accordance with tax legislation, tax administration is to implement the tax
authorities of tax control, the application of methods to ensure performance is
not made on time the tax liability and coercive collection of tax arrears, as
well as the provision of public services to taxpayers (tax agents) and other
public authorities in accordance with the legislation of the Republic of
Kazakhstan [2].
Tax
administration is carried out by tax planning, tax management and fiscal
control. Tax control is the main form of tax administration, which ensures its
effectiveness.
Tax
control is inherent in any state, it was he who creates the conditions for the
implementation of taxes in full its fiscal function - the formation of
financial resources of the state [3, p.29].
Tax
control - state control exercised by the tax authorities for the execution of
the tax legislation of the Republic of Kazakhstan, other laws of the Republic
of Kazakhstan, control over the execution of which is assigned to the tax authorities.
[2] In accordance with Article 7 of the Law “On State Control and Supervision
in the Republic of Kazakhstan” classified types of control and supervision [4].
One
of the main forms of tax control is tax audits. The main purpose of tax audits
is to monitor compliance with tax laws, which is carried out by comparing the
tax reporting data of primary accounting documents, financial statements, and
entries in the accounting registers and tax registers [5].
Control
is divided into the following types:
1)
Internal control - the activity of the state body, aimed at enforcing its
agencies, territorial and structural units, subordinated to state bodies and
organizations adopted by the public authorities, as well as the requirements of
laws and regulations of the Government of the Republic of Kazakhstan;
2)
external control - activities Supervision verification and monitoring of the
activities of other individuals and entities requirements established by laws
and regulations of the Government of the Republic of Kazakhstan [2].
Inspections
of private enterprise - a form of state control, which is held by public bodies
authorized to exercise control and (or) supervisory functions From January 25,
2011 the organization and conduct inspection is determined by the Law of RK “On
state control and supervision in the Republic of Kazakhstan” (hereinafter - the
Law).
Tax
audit - carried out by the tax authorities is to check:
•
execution of the tax legislation of the Republic of Kazakhstan, control over
the execution of which is assigned to the tax authorities;
•
persons who have documents, information relating to the activities of the
taxpayer (tax agent), including an authorized representative of the
participants a general partnership (consortium) responsible for the conduct of
the consolidated tax accounting for such activities, to obtain information
about the taxpayer (tax agent) on issues related to the business activities of
the taxpayer (tax agent);
•
For more information from the taxpayer who has filed a complaint against the
notification of the results of a tax audit
Tax
audits are carried out exclusively by the tax authorities.
Tax
audits are divided into the following types
1)
documentary check
2)
Time study
Tax
audits are divided into planned and unplanned.
Documentary
checks are divided into the following types:
1)
comprehensive audit - an audit conducted by the tax authority in respect of the
taxpayer (tax agent) on the fulfillment of tax obligations on all types of
taxes and other obligatory payments to the budget, completeness and timeliness
of calculation, withholding and transfer of mandatory pension contributions,
completeness and timeliness calculation and payment of social security
contributions. In a comprehensive review can be included questions thematic
inspections.
2)
Thematic audit - an audit conducted by the tax authority in respect of the
taxpayer (tax agent) for full list of which is provided by the Tax Code.
3)
counter check - check by the tax authority of persons carrying out operations
with the taxpayer (tax agent) in respect of which the tax authority conducted a
comprehensive or thematic inspection, in order to obtain more information about
these operations for use in checking the above taxpayer.
Counter
check is ancillary to a comprehensive or thematic inspection.
Counter
check also recognizes the inspection at the request of the tax or law
enforcement agencies of other countries, international organizations, in
accordance with international treaties (agreements) on mutual cooperation
between tax or law enforcement agencies, one of which the Republic of
Kazakhstan, as well as agreements concluded by the Republic of Kazakhstan with
international organizations.
Period
to be documented verification shall not exceed the limitation period.
The
term of the tax audit shall not exceed 30 working days from the date of service
requirements. The term of the tax audit can be extended:
1)
to legal entities which do not have structural units, individual entrepreneurs
and non-residents carrying out activities through a permanent establishment in
the presence of no more than one location in the Republic of Kazakhstan, except
as specified in the tax law:
·
the tax authority has appointed a
tax audit - to forty five working days;
·
higher tax authority - to sixty working
days;
2)
for legal entities having structural units and non-residents carrying out
activities through a permanent establishment in the presence of more than one
location in the Republic of Kazakhstan, as well as for large taxpayers to be
monitored:
·
the tax authority has appointed a
tax audit - to seventy-five working days;
·
higher tax authority - up to one
hundred eighty days.
During
the term of the tax audit is suspended for the period between the date of
delivery of the taxpayer, the tax agent and the date of submission of the
requested information, as well as between the date for the request of the tax
service and the date of receipt of the information and (or) documents to the
specified request.
At
the same tax authority carrying out a tax audit must give the taxpayer (tax
agent) on receipt, or send it by registered letter with acknowledgment notice
of suspension or resumption of tax inspection not later than one working day
from the date of suspension or resumption notifying legal authority statistics.
The period of suspension is included in the term of a tax audit, with the
exception of the following tests, for which the date of suspension shall not be
included in the term of a tax audit:
-
Large taxpayers to be monitored; held in connection with the liquidation of a
resident legal entity, termination of a legal entity - non-resident activity in
Kazakhstan, carried out through a permanent establishment, the termination of
the individual entrepreneur, private notary, lawyer;
-
Thematic inspections of legal entities on transfer pricing;
-
Thematic inspections Assurance of VAT claimed for refund;
-
Carried out on the grounds provided the criminal procedural legislation of
Kazakhstan;
-
Issuing taxpayer (tax agent) requirements of the tax service for production of
documents (information) in the course of which were not submitted all or part
of the documents required for the determination of taxable items and (or)
objects, related to taxation.
The
tax authorities within 30 calendar days prior to the check is sent or handed a
notice of a tax audit to the taxpayer, the tax agent. Notification of taxpayers
to hold the planned tax audit will contain data about the planned tax audit,
the preliminary list of documents required for verification.
The
basis for the tax audit is a prescription stating the issues to be examined.
Requirement
shall be signed by the head of the tax authority or his deputy, certified by
the official seal and registered.
On
the basis of the requirements can be carried out only one tax audit, with the
exception of thematic reviews on:
-
Statement on registration with the tax authorities;
-
The availability of cash machines;
-
The existence and authenticity of excise and registration-control marks,
licenses, permission to leave ethyl alcohol, patent registration card.
Upon
completion of a tax audit officer of the tax service is a tax audit and imposed
a notice of the results of a tax audit.
The
completion of a tax audit shall be the date of delivery of the taxpayer (tax
agent) of a tax audit.
Upon
receipt of a tax audit a taxpayer (tax agent) must sign of its receipt on a
copy of a tax audit by the tax bodies.
If
it is impossible act of handing taxpayer (tax agent) in the absence of the
taxpayer (tax agent) at the location, a tax inspection carried out with the
assistance of witnesses. In this case, the date of completion of a tax audit is
the date of preparation of the report of the tax examination.
The
taxpayer (the tax agent) has the right not to allow on the territory or to the
room for carrying out tax audit of officials of body of tax administration in
cases if:
1)
the instruction isn't issued in accordance with the established procedure;
2)
the review periods specified in the instruction didn't come or expired;
3)
these persons aren't specified in the instruction;
4)
officials of body of tax administration have at themselves no the special
admissions necessary for the admission on the territory or to the room of the
taxpayer according to acts of the Republic of Kazakhstan.
Checks
over observance of an order of application of cash registers. An order of
application of cash registers in the territory of the Republic of Kazakhstan
the monetary calculations performed at trade operations, works, services by
means of cash are made with obligatory application of cash registers
These
requirements don’t extend on monetary calculations:
1)
the natural persons who aren't subject to obligatory state registration as
individual entrepreneurs except the persons which are carrying out private
notarial activity;
2)
individual entrepreneurs (except realizing excise goods):
-
carrying out activity on the basis of the single coupon or the patent within
special tax regime for subjects of small business;
-
carrying out activity within special tax regime for country or farms;
3)
regarding rendering services to the population in transportations in public
city transport with issue of tickets in the form approved by authorized
government body in the field of transport in coordination with authorized body.
The
vending machines and terminals of fee perfroming monetary calculations at trade
operations or rendering services by means of cash are equipped with cash
registers which models are included in the state register.
At
application of cash registers the following requirements are imposed:
1)
statement of a cash register on the account in tax authority prior to activity
is carried out;
2)
issue of the check of a cash register or the cash-memo for the sum paid for
goods, work, service is carried out;
3)
access for officials of tax authorities to a cash register is provided.
The
main requirement to models compliance of a cash register to technical
requirements at inclusion in the state register is defined by authorized body.
The
decision or refusal on inclusion of model of a cash register in the state
register is accepted by authorized body within thirty working days from the
date of adoption of the tax statement.
Consequences
of violations on application of KKM
Tax
authorities carry out inspections over observance of an order of application of
cash registers, and use the data which are stored in fiscal blocks of memory of
the cash registers (CR) when carrying out tax audits on execution by the
taxpayer of the tax obligation for payment of taxes and other obligatory
payments in the budget.
For
violation of an established order of application of KKM administrative measures
in compliance of Art. 284 of the Code of Administrative Offences (the
Administrative Code of PK) are applied [5].
Thus,
violation of the order of application of cash registers established by the tax
law of the Republic of Kazakhstan - attracts a penalty on individual
entrepreneurs, private notaries and officials in the amount of 20 to 30 monthly
settlement indicators (MSI).
We
will consider in details that is violation of an order of application of KKM
for which penalties are imposed:
1.
lack of registration of KKM in tax authority prior to the activity connected by
cash calculations is violation of the requirement of suite 1 of item 4 of Art.
645 of the Tax Code of RK;
2.
not implementation of issue of the check of KKM or the cash-memo for the sum
paid by cash for goods, services and works except for payment via vending
machines (violation of sub item 2 of item 4 of Art. 645 of the Tax Code of RK);
3.
not execution by the taxpayer of a duty of giving in tax authority of the tax
statement for modification of registration data of a cash register within five
working days from the moment of emergence of the changes specified in a
registration card of a cash register (Art. 647 of the Tax Code of RK);
4.
not ensuring access of officials of tax authorities to a cash register (sub
item 3 of item 4 of Art. 645 of the Tax code of RK);
5.
violation of forms and the requirement to contents of the control check, namely
not reflection in the check:
•
name of the taxpayer;
•
identification number;
•
serial number of a cash register;
•
registration number of a cash register in tax authority;
•
serial number of the check;
•
date and time of commission of purchase of goods, performance of work,
rendering services;
•
price of goods, work, service and (or) sum of purchase;
•
fiscal sign (item 3 of the Art. 649 of the Tax code);
6.
at technical malfunction of KKM if:
•
doesn’t print, prints illegibly or the requisites on the control check
determined by article 649 of this Code are printed not completely;
•
there is no opportunity to obtain data of fiscal memory;
•
the seal of tax authority is absent or is damaged;
•
there is no marking of manufacturer (item 6 of Art. 650 of the Tax code);
7.
not compliance of the indication of the report (X the report) about current
state of cash desk, to the sum of cash in cash desk, at the time of removal of
the report taking into account the sums of a receiving and delivery of the cash
which isn't connected with realization of goods, performance of work, rendering
the services reflected in the book of the accounting of cash (item 4 of Art.
650 of the Tax code);
8.
not providing the statement within three working days from the moment of
emergence of malfunction of KKM which elimination is impossible without
violation of integrity of a seal of tax authority. With the instruction in the
statement of number, date of issue of the KKM registration card and total
indications of the counter for the beginning of day in which there was a
malfunction. Granting the conclusion of the center of maintenance with the
reasonable indication of terms of carrying out repair and a cause of defect
(item 5 of Art. 650 of the Tax code);
9.
not granting KKM in tax authority for installation of a seal after elimination
of technical malfunction. Thus the term of granting can't be less than a term
of carrying out the repair specified in the conclusion of the center of
maintenance, but no more than fifteen working days from the date of delivery of
permission of tax authority to violation of integrity of a seal. (item 5 of
Art. 650 of the Tax code);
10.
not compliance of the cash given the account to indications of replaceable
account for the corresponding date (item 3 of the Art. 650 of the Tax Code of
RK);
11.
not providing the tax statement within five working days, in case of full
filling of the book of the accounting of cash and (or) the book of cash-memos
or in case of their loss (damage). Thus, along with the tax statement it is
provided (item 8 of Art. 650 of the Tax code):
•
the new books of the accounting of cash and (or) cash-memos numbered, strung
together, certified by the signature and (or) the press of the taxpayer.
•
a cash register with the established seal of tax authority for removal of the
fiscal report;
•
passport of manufacturer of a cash register.
•
numbered, bound, signed and stamped by the head of the tax authority used the
book accounting of cash and cash checks;
•
registration card of a cash register
12.
not compliance of model of a cash register to technical requirements of
inclusion in the State Register of KKM (Art. 651 of the Tax code).
Besides,
according to Art. 648 the tax application with representation of KKM and
documents specified in point 10 of this material in the following cases is
submitted:
1)
the terminations of implementation of the activity connected with the monetary
calculations perfromed at trade operations, performance of work, rendering services
by means of cash;
2)
changes of a place of use of a cash register or the location of the taxpayer
using a cash register in the vending machine or the terminal of fee if such
change demands registration of a cash register in other tax authority;
3)
impossibility of further application in connection with technical malfunction
of a cash register;
4)
cash register exceptions of the state register;
5)
in other cases which aren’t contradicting the tax law of the Republic of
Kazakhstan.
According
to subitem 4 of item 1 of Art. 650 of the Tax Code of RK at completion of
change the responsible person of the taxpayer at operation of KKM (seller)
carries out the “end of change” procedure by removal of the replaceable report
(Z-report) according to technical requirements of the manufacturer of model of
a cash register.
Replaceable
reports, books of the accounting of cash and cash-memos, and also checks of
cancellation, return and control checks by which operations of cancellation and
return are performed, have to be stored by the taxpayer within five years from
the date of their press or full filling.
For
cash registers, except for used in vending machines, the period of change
shouldn't exceed twenty four hours.
For
cash registers with which vending machines are equipped, the period of change
is defined by the taxpayer and shouldn’t exceed one calendar month.
It
should be noted if KKM for the beginning of day is included though realization
of goods and a turn of cash wasn’t, it is necessary to carry out change
closing.
According
to item 8 of Art. 646 of the Tax Code of RK the registration card of a cash
register is given to the taxpayer at statement of a cash register for the
account in tax authorities, is stored during all term of operation of a cash
register and shown on request of tax authorities.
Considering
the above it is possible to come to conclusion that tax control is perfect.
However it is impossible to exclude those facts of violation which are elicited
at tax audits. And these violations often are omissions of tax administration
which is urged to provide payment of a tax and observance of requirements of
the legislation by taxpayers. And it demands improvement of harmonization of
system of tax administration, tax administration and a tax policy in general.
Thus,
proceeding their of that tax administration, actually, is also a tax policy,
management of tax reform consists in its legal, organizational and technical
and administrative providing as difficult taksometrical process, from the point
of view of timely and economically effective implementation of the program and
target tasks provided by its project, minimizing of all possible losses
(deviations) on collecting and distribution of taxes; daily control over
unambiguous interpretation in all territory of the country and strict
observance of requirements of the tax law, including, on protection of the
rights of taxpayers; the operational solution of the questions arising thus.
References:
1.
Porokhov E.V. Main problems and ways to further improve the legal regulation of
tax administration in the Republic of Kazakhstan // Financial and Economic
Journal, May 17, 2012. Number 5 (54) – 48 p.
2.
Code of the Republic of Kazakhstan concerning taxes and other obligatory
payments to the budget (Tax Code) (as amended as of 07.04.2015).
3.
Bondarenko I.N. Bodies that control the payment of taxes and fees: the state,
contradictions, prospects // Tax Law - 2004. - ¹ 6 – 29 p.
4.
Law of the Republic of Kazakhstan “On state control and supervision in the
Republic of Kazakhstan” (with amendments and additions as of 29.12.2014)
5.
Order of the Chairman of the Tax Committee of the Ministry of Finance of the
Republic of Kazakhstan dated June 24, 2011 ¹ 248 On approval of recommendations
on tax audits of taxpayers (most often).
6.
Code of the Republic of Kazakhstan on Administrative Offences (with amendments
and additions as of 04.06.2015).