The Department of State Revenue for the Abay region reports that one of the enforcement measures in case of failure to fulfill obligations to pay taxes and payments to the budget is the collection of the amount of tax debt of the taxpayer (tax agent) from the accounts of his debtors. The application of this measure by the tax authority is carried out in accordance with Article 123 of the Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” (Tax Code).

         If the taxpayer does not have bank accounts, as well as in the event of non-payment of tax debt after collection from money in bank accounts, the tax authority, within the limits of the resulting tax debt, forecloses on the money in the bank accounts of third parties who have a debt to the taxpayer ( hereinafter referred to as debtors).

In this case, the taxpayer is obliged, no later than ten working days from the date of receipt of the notice of repayment of tax debt, to submit to the tax authority that sent such notice a list of debtors indicating the amount of receivables.

Based on the list of debtors submitted by the taxpayer, the tax authority sends notices to debtors about the foreclosure of money from their bank accounts to pay off the taxpayer's tax debt within the limits of the amounts of receivables.

No later than twenty business days from the date of receipt of the notification, debtors are required to submit to the tax authority that sent the notification an act of reconciliation of mutual settlements, drawn up jointly with the taxpayer, on paper or electronic media as of the date of receipt of the notification.

The act of reconciliation of mutual settlements between the taxpayer and his debtor must contain the following information:

1) the name of the taxpayer and his debtor, their identification numbers;

2) the amount of debt of the debtor to the taxpayer;

3) legal details, seal and signatures of the taxpayer and his debtor or electronic digital signatures of the taxpayer and his debtor;

4) the date of drawing up the reconciliation report, which should not be earlier than the date of receipt of the notification of repayment of debt to the budget.

Based on the act of reconciliation of mutual settlements, the tax authority issues collection orders to the debtor’s bank accounts to collect the amount of the taxpayer’s tax debt

A second-tier bank or an organization carrying out certain types of banking operations, the debtor - taxpayer, is obliged to execute the collection order issued by the tax authority to collect the amount of the taxpayer's tax debt.

Collection of a taxpayer's tax debt from the accounts of his debtors in the manner prescribed by this article is carried out regardless of the level of risk to which the debtor is assigned in accordance with the risk management system.

          From 01/01/2023 paragraph 2 of Article 123 is supplemented by the fact that if there are court decisions that have entered into legal force on the collection of debts from debtors in favor of the taxpayer, a copy of the court decision is also submitted to the tax authority. Based on the submitted court decision, the tax authority issues collection orders to the debtor’s bank accounts to collect the amount of the taxpayer’s tax debt.

In accordance with paragraph 2 of Article 123, the tax authority has the right, in order to identify the taxpayer’s debtors, to use data from the tax authorities’ information systems, as well as to conduct an audit of the taxpayer on the issue of determining mutual settlements between the taxpayer and its debtors. During the audit, the taxpayer also has the right to conduct a counter-inspection of debtors.

In this case, the tax authority does not have the right to confirm the amounts of receivables disputed in court.

In accordance with paragraph 4 of Article 123, if debtors fail to submit a reconciliation report on mutual settlements on time (within 20 working days), or fail to confirm the amount of receivables, the tax authority conducts a tax audit of these debtors.

Based on the debtor’s inspection report, including a counter-inspection carried out in accordance with paragraph 3 of Article 123, confirming the amount of receivables, the tax authority also has the right to issue collection orders to the debtor’s bank accounts to collect the amount of the taxpayer’s tax debt.