Notice of Discrepancies: Deadlines, Consequences, and Required Actions - FCHAIN

Notice of Discrepancies: Deadlines, Consequences, and Required Actions

The tax authorities of the Republic of Kazakhstan continue to conduct desk tax audits aimed at identifying inconsistencies in tax reporting without carrying out on-site tax inspections. If discrepancies are identified, the taxpayer receives a notice that must be complied with within the timeframes established by law. Below, we explain what a desk tax audit is and what consequences may arise if a taxpayer fails to comply with a notice issued by the tax authorities.

 

What Is a Desk Tax Audit?

A desk tax audit is a form of tax control conducted by the tax authorities through the analysis of tax returns, information, and documents available to government authorities. Its primary purpose is to give taxpayers the opportunity to independently correct identified discrepancies and fulfill their tax obligations without the application of more stringent control measures.

During a desk tax audit, information from various sources is compared, including:

1. tax returns and other tax forms;
2. information available in the information systems of the State Revenue Authorities;
3. data from government authorities regarding taxable objects and objects related to taxation;
4. other information on the taxpayer’s activities obtained from lawful sources.

The audit is conducted after the deadline for submitting tax reports for the relevant tax period established by the Tax Code of the Republic of Kazakhstan.

 

When Is a Notice Issued?

If inconsistencies or discrepancies are identified during the analysis, the tax authority issues a Notice of Discrepancies Identified as a Result of a Desk Tax Audit. Such a notice is issued to all taxpayers except participants of the Horizontal Monitoring program. Upon receipt of the notice, the taxpayer must eliminate the identified discrepancies within the prescribed period or provide the necessary explanations and supporting documents confirming the accuracy of the submitted tax reporting.

 

What Happens If the Notice Is Not Complied With?

Failure to comply with a desk tax audit notice may result in restrictive measures being applied by the tax authorities. In particular, the legislation provides for the following consequences:

1. restriction of access to internet resources and/or the online platform of a foreign company conducting business through an online platform in the Republic of Kazakhstan;
2. suspension of outgoing transactions on the taxpayer’s bank accounts. This measure is applied within one business day following the expiration of the notice compliance deadline;
3. suspension of the taxpayer’s right to issue electronic VAT invoices (e-Invoices) within one business day following the expiration of the notice compliance deadline.

These restrictions may significantly affect business operations, complicate settlements with counterparties, and lead to delays in fulfilling contractual obligations.

 

Why Is It Important to Respond Promptly?

Receiving a notice does not automatically result in penalties. The desk tax audit procedure provides taxpayers with an opportunity to voluntarily eliminate identified discrepancies without undergoing an on-site tax inspection. Therefore, it is important to promptly analyze the causes of the identified discrepancies, review the tax reporting, and, if necessary, prepare amendments or provide well-reasoned explanations. Timely compliance with the notice helps avoid the suspension of bank account transactions, restrictions on issuing electronic VAT invoices, and other adverse consequences for business.

 

FChain — Comprehensive Business Support in Kazakhstan

FChain specialists provide comprehensive support to companies and entrepreneurs in matters related to tax compliance and business operations. We offer a full range of business support services, including:

• registration of LLPs, branches, and representative offices in Kazakhstan;
• accounting, tax, and legal support for businesses;
• HR services;
• consultations on corporate, labor, and immigration legislation.

If your company has received a desk tax audit notice or you are planning to establish a business in Kazakhstan, FChain provides comprehensive support in taxation, accounting, company registration, and compliance with the legislation of the Republic of Kazakhstan.

 

Social Reform in Kazakhstan

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

 📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820