Services

Timely preparation for the tax inspection facilitates the procedure of cooperation with the tax authorities and helps to minimise risks of potential tax assessments and tax disputes. Our support at the stage of preparation for the tax inspection includes:

• Assessment of risk that the Company may be selected for the tax audit.
• Development of recommendations for staff actions and necessary preparatory organisational activities.
• Assistance with the measures aimed at reduction of tax assessment risks, including diagnostics of tax risks, tax review, development and improvement of tax accounting policy.
• Assistance with methodological tax issues.

Stress test shortly before tax inspection.

The service involves testing of the tax personnel from the perspective of psychological resistance, right behaviour during the tax inspection and exclusion of unlawful actions of 3rd parties. We will provide recommendations for mitigation/reduction of risks by the results of stress test. Observations of PwC consultants obtained in the framework of the project might be used for identification of technical and communication training needs of tax department employees, that are required to ensure high quality and efficient performance.

Assistance during complex, thematic (including transfer pricing) and chronological tax inspections

During the inspection we can support with:

• analysis of tax authorities' requests from the viewpoint of legitimacy and their reasonableness;
• preparation of draft responses to the tax authorities' requests;
• analysis of documents to be provided by the Company per tax authorities' requests;
• assessment and analysis of risks of potential additional tax charges related to issues raised by inspectors during the tax inspection;
• provision of recommendations for mitigation and reduction of risks;
• consultation of the Company in case of questioning of employees by the tax authorities;
• development of arguments to support the Company's position.

Assistance during the administrative proceedings related to tax violation:

Within the framework of these services we can support you with:

• filing a request to cease administrative proceedings during the tax assessments appeal to higher tax authorities or court;
• participation in examination of administrative case;
• appeal results of decision on application of administrative fine;
• verification of applicability and check of calculations of administrative fines amount. 

Preparation of appeal against the results of tax inspection to the higher tax authority

Notification received based on the results of tax inspection might be appealed by the Company to the higher tax authorities (from 01.01.2017 to the Ministry of Finance of the RK). If the Company plans filing the appeal, we can assist with the following:

• analysis of tax inspection Act in order to identify violations of tax inspectors (if any);
• development of arguments in support of the Company's position;
• preparation of draft appeal and attachments to it (where necessary) based on the discussion of the approach with the Company;
• filing the appeal with the relevant tax authority;
• organisation of meetings with representatives of the tax authority for presentation of the Company's position;
• tracing the result of appeal processing.

Tax resolution in the court disputes 

• analysis of tax authorities' arguments provided in an Act of tax audit/Decision of tax authorities (based on the results of appeal processing, if applicable)/decision of subordinate court;
• development of arguments to support the Company's position;
• based on the discussion of the approach with the Company preparation of draft appeal and attachments to it (where necessary);
• filing the appeal to the relevant court, including appeal and cassation instances;
• representation of the Company during court hearings;
• expert support within framework of civil court proceedings;

Consulting on criminal investigation issues based on the results of tax inspections

• We are ready to support the Company with development of defence arguments for the Company's staff in case of initiation of criminal case based on the results of conducted tax inspection.
• We also developed set of services aimed at reduction of criminal liability risk for bona fide personnel. Our solution includes:
  • Review and development of amendments to the tax accounting policy from the perspective of assigning and mitigating criminal liability;
  • Review and development of amendments to an article of associations, aimed to assign criminal liability depending on the value of tax liabilities;
  • Development of the draft corporate decision on adoption of procedures on assignment of responsibility.
  • Development of the draft amendments (or preparation, if needed) of the responsible personnel's duty instructions.

Assistance with introduction of amendments and additions to law, aimed at improvement of investment climate and elimination of ambiguous interpretation.

• Annually the government performs work on development of amendments and additions to the tax law. We can provide assistance to the Company with introduction of amendments and additions to the law, aimed at improvement of investment climate and elimination of ambiguous interpretation, including:
  • bringing up issues of concern for discussion within the framework of relevant Working Groups on improvement of tax law and other associations and organisations;
  • assistance to the Company with preparation of preliminary draft amendments to Tax Code;
  • collection of relevant international experience;
  • follow up on the status of proposed amendments and update of proposed changes taking into account comments from state authorities and other stakeholders.

Assistance with mutual agreement procedure between tax authorities of Kazakhstan and other countries

• If non-resident Company (or its headquarter in RK) believes that actions of Kazakhstan tax authorities lead or will lead to taxation in non-compliance with the provisions of Double Taxation Treaty (if it could be applied), it can address the case to tax authorities of a country of its residence for resolution in a framework of mutual agreement procedure between tax authorities of two countries. Additionally, within the framework of this procedure it is necessary to communicate closely with the State Revenue Committee.
• Stated above protection mechanism works similarly to Kazakhstan residents looking for protection of their interests in other countries. We are ready to analyse the possibility of using mutual agreement procedure in case of dispute with tax authorities on international taxation issues. If this procedure is applicable to the tax issue of the Company, depending on the requirements of each particular case we are ready to provide the following services:
  • preparation and filing to tax authority of foreign country/to the State Revenue Committee of the Republic of Kazakhstan of request for application for mutual agreement procedure;
  • preparation and sending a letter to the State Revenue Committee of the Republic of Kazakhstan notifying them on launching of mutual agreement procedure by foreign tax authority and providing arguments in support of the Company's position on the issue under consideration;
  • assistance with cooperation between tax authorities of foreign country and the Republic of Kazakhstan in order to provide necessary details if requested;
  • follow up on status of the procedure and updating the Company.

Assistance with VAT refund

• Usually tax refund process is accompanied with the taxpayers' thematic tax inspection. Within framework of this service we can assist you with:
  • preparation for thematic VAT tax inspection;
  • assistance during tax inspection including identification and development of arguments in support of taxpayer's position;
  • appeal of tax inspection results in higher tax authority, including participation in meetings with representatives of tax authorities;
  • appeal of tax inspection results in court, including participation in court hearings;
  • preparation of expert opinion on application of relevant tax law, for example, application of Risk Management System for the purpose of refund of excess VAT amount based Act of tax inspection.

Assistance with refund of tax withheld at source from non-residents' income (assistance during the whole procedure).

• Assistance with refund of tax withheld at source from non-residents' income (assistance during the whole procedure).

Our assistance with withholding tax refund includes:

• analysis of the Company's documents, provisions of relevant Double Tax Treaty for the possibility of tax refund from budget;
• collection of the required list of documents (including verification of correctness and completeness of provided documents), preparation and filing of withholding tax refund application;
• follow up on status of the application and provision of additional detail to the Kazakhstan tax authorities' (per their requests);
• in case of tax refund denial we are ready to assist you with appeal of the decision to the higher tax authority, or court.