Tax due diligence (pilot project)

Briefly:

A draft Order of the Deputy Prime Minister - Minister of Finance of the Republic of Kazakhstan “On approval of the Rules for the exercise by taxpayers (tax agents) of tax due diligence (pilot project). 

In detail:

On May 22 2023, the Ministry of Finance published a draft Order on the Due Diligence Rules for Taxpayers (as part of a pilot project). The initiative is also aimed at reducing the shadow economy and counteracting non-commodity transactions.

The implementation of the pilot project is expected in the second half of 2023, while the participation of taxpayers (buyers of goods / works / services) in it may be voluntary. 

Within the framework of the project (in case it is implemented), taxpayers participating in the project will also have the right to exercise tax due diligence by sending a request through the information system "Business Partners Register", as well as to receive information about the counterparty from other sources. It is also expected that, in a number of cases, information on the exercise of due diligence will be submitted to the state revenue authorities. At the same time, the state revenue authorities will have the right to receive / request such information from the taxpayer and will be required to take into account the due diligence performance during the tax control and encourage its manifestation by at least 5 points in the Risk Management System.

The list of information sources on the integrity and reliability of counterparties is essentially available. 

Consideration of this pilot project, as well as the corresponding extensive judicial and administrative practice, testifies to the increased attention of state revenue authorities to the issues of checking counterparties and identifying transactions with unreliable suppliers. In this regard, the quality of organizing the corresponding internal function of companies, the availability of well-defined procedures for checking counterparties, collecting and storing relevant information, as well as diagnosing risks based on historical transactions are becoming of a particular importance. 

Are you interested in this topic?

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