A new approach to tax administration to be introduced in Kazakhstan

During the meeting of the Government under the chairmanship of the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, Minister of Finance Bakhyt Sultanov reported on the liberalization of relationships between the state and the taxpayer envisaged in the new draft Tax Code and the accompanying bill.

The Minister reported that in order to establish clear rules for interaction between state revenue authorities and the taxpayer, such principles of tax administration as the principle of legality, the principle of efficiency and the principle of risk-based administration are introduced.

In order to stimulate the increase of tax discipline, the risk management system is radically revised. A differentiated approach to tax administration for different categories of taxpayers is being introduced.

"It should be noted that the categorization of taxpayers in many countries of the world is confidential, "closed" information. We propose to introduce a combined model that also includes "open criteria" that will serve taxpayers as a guide for entering the "green zone" of a low risk level and a warning against getting into the "red zone", Bakhyt Sultanov said.

The project provides a new type of interaction with large taxpayers, based on the principles of trust and openness - Horizontal monitoring. This approach is one of the progressive methods of administration used in OECD countries.

The bill contains the main conditions for the compulsory liquidation of inactive taxpayers. In order to ensure the transparency of this procedure, information on compulsory liquidation will be placed in advance in the media, and work will be carried out with claims of potential creditors of these companies.

"In terms of tax inspections, measures are envisaged to significantly reduce their quantity and improve quality," the minister stressed.

In particular, the grounds for conducting unscheduled inspections have been reduced by 56%.

The draft Code provides for the liberalization of licensing controls. Measures are also envisaged to optimize VAT refund procedures.

In the accompanying draft law, part of the administration provides for amendments to a number of legislative acts.

"In conclusion, I want to note that all the innovations on improving the administration will certainly positively affect the development of business and provide a transition from fiscal methods of the tax authorities to partnership with business," the minister concluded.

It should be reminded that today at a meeting of the Government the issue of the draft Code "On taxes and other mandatory payments to the budget and related legislation" was considered.

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