As Business portal Kapital.kz informs, with the introduction of risk management system in respect of selection of taxpayers to be audited, the number of scheduled tax audits has reduced by 4 times.

Non-scheduled audits of taxpayers carried out by the bodies of the Tax Committee of RoK Ministry of Finance comprised 94% of their total number, Deputy Chairman of the Tax Committee Mr. Argyn Kipshakov informed. 

“With the introduction of a risk management system in respect of selecting taxpayers to be audited, the number of scheduled tax audits was reduced by more than 4 times. In spite of the reduction of scheduled audits, a high percentage of tax audits still relates to non-scheduled audits. Thus, for the last year, the ratio of scheduled audits comprised only 6%, while non-scheduled audits – 94%, that is, 15 times as much as scheduled ones”, A. Kipshakov noted at VIII tax conference on Friday, KazTAG informs.

At that, according to his information, the structure of non-scheduled tax audits for the last year in the light of audits grounds, looks as follows: based on taxpayers’ applications for liquidation – 88%, based on an in-house control – 7%, based on taxpayers’ requests for refund of Value-Added Tax (VAT) – 3, within the framework of the criminal procedural code – 2%.

“If we look at the nature of violations discovered as a result of tax audits, for the most part these are violations related to corporate income tax and VAT”, he stressed.

In the meantime, A. Kipshakov noted, there are cases when “tax legislation norms are not correctly applied by auditors due to insufficient qualification”.

Based on the foregoing, now in respect of carrying out tax audits, at least two issues should be resolved.

“Firstly, this is reduction in number of non-scheduled audits. The significant excess of non-scheduled audits number over scheduled ones does not allow to perform an optimal allocation of resources for conducting audits throughout a year. This leads to tax inspectors being overloaded and, hence, has a negative effect on quality of audit reports and duration of tax audits performed”, A. Kipshakov noted.

“Secondly, insufficient qualification of auditing tax inspectors and, as a result, fluctuation of personnel of the tax audit subdivision. At that, one of the reasons is a demand for qualified employees of the mentioned subdivision in business structures”, he concluded.

Source: Business portal Kapital.kz.