“Measures for the forced collection of tax debts”

Measures for forced collection of tax debt are provided for in Chapter 14, Article 121 of the Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” dated December 25, 2017 No. 121-VI (hereinafter referred to as the Tax Code).

 According to the norms of this article, tax authorities apply measures for the forced collection of tax debts of a taxpayer - a legal entity, a structural unit of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual entrepreneur, a person engaged in private practice.

The application of measures for the forced collection of tax debts is carried out taking into account the results of the risk management system.

     Before the commencement of enforcement measures, taxpayers with medium and high risk levels are sent a notice of repayment of tax debt.

     Forced collection of tax debt is carried out in the following order:

       1) at the expense of money in bank accounts;

       2) from accounts receivable;

       3) through the sale of limited-disposal property;

      4) in the form of a forced issue of authorized shares.

Compulsory collection measures are subject to cancellation in the following cases:

      1) initiation of bankruptcy proceedings - from the day the court issues a ruling to initiate bankruptcy proceedings;

     2) application of the rehabilitation procedure in relation to the taxpayer - from the day the court issues a ruling to initiate proceedings on the rehabilitation case;

      3) approval by the court of an agreement on debt restructuring - from the day the court’s ruling on approval of such an agreement comes into force;

4) forced liquidation of second-tier banks, insurance organizations - from the date of entry into force of the court decision on forced liquidation;

      5) forced termination of the activities of branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance organizations of the Republic of Kazakhstan - from the date the authorized body for regulation, control and supervision of the financial market and financial organizations made a decision on deprivation of a license.

For the amount of the tax liability that is not included in the register of creditors' claims in the manner prescribed by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy, and for the amount of the taxpayer's tax liability that is not included in the debt restructuring agreement approved by the court, the tax authority applies enforcement measures.

      If a taxpayer (tax agent) appeals a notice of repayment of tax debt, the application of measures for compulsory collection of tax debt is not suspended until a decision is made based on the results of consideration of the complaint.