One of the measures applied by the tax authority to a taxpayer in case of non-repayment of tax arrears is the restriction on the disposal of property. The procedure for applying this measure is provided for in Article 120 of the Tax Code («On Taxes and Other Mandatory Payments to the Budget» dated December 25.12. 2017 №  121-VI).

The tax authority restricts the disposal of a taxpayer's property on the basis of a Decision (hereinafter referred to as the Decision), depending on the category of the payer (Article 137 of the Tax Code).

If the risk category is high, the Decision is made after the 1st business day from the date of delivery of the Notification «On repayment of tax arrears (hereinafter referred to as the Notification);

At the average level of the risk category, the Decision is made after 15 working days from the date of delivery of the Notification. It should be noted that the Decision is also made in relation to the taxpayer who appealed the Notification «On the results of the audit».

In this case, the restriction is made by the tax authority without sending a Notification after 3 working days. The restriction on the disposal of a taxpayer's property is carried out by the tax authority in relation to the property:

- property owned by right of ownership or economic management and property held on the balance sheet of the taxpayer.

- fixed assets, investments in real estate, biological assets that are on the balance sheet according to accounting data. Are not subject to restrictions in the disposal:

-life support facilities;

-electric, thermal and other types of energy;

-food products or raw materials, the shelf life or shelf life of which does not exceed 1 year.

Life support facilities include structures, technological installations and aggregates of gas supply, energy supply, heat supply, water supply and sanitation organizations, the termination or suspension of operation of which may lead to disruption of the engineering infrastructure of settlements and territories.

At the same time, the tax authority is prohibited from seizing the taxpayer's limited property, transferred or received under financial leasing or pledged, until the termination of the lease agreement or pledge.

 Paragraph 3 of Article 120 of the Tax Code prohibits changing the terms of the pledge agreement, extending the term of the agreement, subletting and re-mortgaging from the date the tax authority restricts the disposal of property until its cancellation.

The decision is made by the tax authority:

-for the amount of the tax debt specified in the Notification;

-for the amount of taxes specified in the Notification  «On the act of tax audit», in case of appeal.

Upon the expiration of 10 working days from the date of delivery of the Decision to the taxpayer, the tax authority makes an inventory of the restricted property in the presence of the taxpayer by drawing up an inventory of the property (hereinafter referred to as the Act).

 If a taxpayer owns property, the rights to which or transactions for which are subject to state registration, this property is subject to inventory in the first place. The inventory report indicates the value of the described property, determined on the basis of the taxpayer's accounting data or the market value of the property. The market value is indicated in the case of the taxpayer's presentation of the value of the property carried out by him independently. The Act specifies the taxpayer's obligation to ensure that the limited property at his disposal remains unchanged, with the exception of changes due to natural wear and tear or natural loss under normal storage conditions, until the restriction is lifted in accordance with the legislation of the Republic of Kazakhstan.

Article 246 of the Criminal Code of the Republic of Kazakhstan provides for criminal liability for embezzlement, alienation or illegal transfer of inventory-restricted property.

 The tax authority cancels the decision and the Act no later than the 1st business day.:

- from the date of repayment of the tax debt;

- cancellation of the contested part of the Notification «On the results of the audit» (from the date of such decision or entry into force of such judicial act);

 - from the date of the taxpayer's withdrawal of the complaint against the Notification «On the results of the audit».

After the taxpayer pays off the debt or sells the property as a result of the auction, with the signing of a contract for the purchase and sale of property, the tax authority sends a message to the authorized state bodies no later than 5 working days, the Decision «On termination of encumbrance of property rights».