Experience

Tax Disputes

• successful representation of a Company(subsoil user) in court in  an appeal  against the refusal by the tax authorities to confirm  the return of VAT (totaling of 1.9 billion tenge) from the budget;
• representation in court of a major Oil and Gas Company appealing a notification of tax inspection results and charge of 248 million tenge in additional production share. As a result the notification was annulled and the claim was satisfied by the court in full measure;
• successfully appealing against the illegal requirements of tax authorities on registration of different Oil and Gas companies;
• representing the interests of a major Uranium mining company in an appeal against an inspection certificate of the Custom Control Department on an additional charge (95 million tenge) of custom payments, custom duties and VAT on imports. As a result this additional charge  was annulled in full measure;
• successfully representing and protecting the interests of one of the major subsurface users in Kazakhstan in a tax dispute with the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan. A charge of 105 million US dollars in additional tax amount, penalty and fine, was annulled in full measure);
• supporting and participating  in the tax inspection of  issues surrounding  the calculation of the internal rate of return for making up of excess profits tax (2007-2010), positively resolving disputes regarding annual aggregate income (AAI) for the purpose of excess profit tax (EPT) (account of currency difference and others), and resolving questions about the deductibility of a contract purchase price or participation interest of new investors etc.;
• successfull representation of the interests of major subsurface users in Kazakhstan during an appeal against the tax inspection results on transfer pricing (2003-2010);
• successfull representation of the interests of an Ore Mining Company in an appeal against tax inspection results in court  regarding the accuracy of calculations and the refunding a commercial discovery bonus in 2010 (stock gain due to additional exploration);
• successful representation of the interests of major subsurface users in Kazakhstan during an appeal against tax inspection results on VAT recovery (2006-2010);
• successful representation of clients in tax disputes relating to the  taxation of parties under an agreement about hedging, deductibility of expenses (for the purposes of CIT and EPT) on payments for administrative services of a head of a company, amortization on inactive cased hole and a royalty for wellhead gas etc.

VAT Refund from the State Budget

• VAT refund for company-subsurface users amounting to  1.9 billion tenge;
• VAT refund for  an  export company, which works in the sphere of uranium extraction to the amount of 300 million tenge;
• successful representing in court the interests of a subsoil user against the refusal on the part of the tax authorities to refund over 100 million tenge in VAT; representing the interests of subsoil users in disputes regarding the refusal of tax authorities to confirm the refundable VAT at the zero rate.

Taxation of Subsoil Users

• advising a major foreign company on terms of taxation income from capital gains during sale of participation interests in a Kazakhstani company – subsoil users;
• preparation of an analytical survey for representatives of an Indian company regarding tax on the production of useful minerals, rental tax on export, payment in compensation for past costs and excess profit tax;
• providing consultation about  obligations arising from payments of a commercial bonus for ore mining companies;
• preparation of a memorandum for oil companies in the question of tax on production of useful minerals;
• advising ore mining companies about the tax registration of shipped goods on a vessel;
• advising an oil company on assessing excess profit tax, especially on issues of separating contract and non-contract activity in order to make changes and additions to the contract for subsoil use;
• development for the oil company model for calculating the excess profit with peculiarities provided by a contract for subsoil use; 
• analysis of the tax regime under subsoil use contracts, providing advice on the calculation and payment of taxes and special payments of subsurface users for past tax periods;
• preparing advice on VAT issues related to exploration operations for major foreign subsurface users;
• advising subsoil users operating under Production Sharing Agreements regarding the legal grounds for the revaluation of their fixed assets in accounting and taxation records;
• advice on the optimization of repayment of loans on the basis of specifics of the tax regime;
• analysis and calculation of the excess profit tax, commercial discovery bonus, and subscription bonus, with recommendations for the optimization of tax liabilities;
• identifying potential risks associated with the use of past tax legislation in connection with current tax legislation taking into account law-enforcement practice.

International Taxation

• providing recommendations for organizing a more effective corporate structure for a major shipping company so as to  minimize the  taxation of income from shipping activities;
• advising international financial institutes about the taxation of transactions, connected with payments of international loans, guarantees and leasing agreements;
• providing recommendations for international investment groups on how to achieve a more effective corporate structure for entrepreneurial activities in Kazakhstan and abroad in the context of taxation;
• consultation of banks, service, trade, engineering and other companies concerning formation of permanent establishment in Kazakhstan;
• providing consultations to the owner of a major internet company  regarding  taxation of income resulting from transfer of exclusive rights to the website;
• consulting of the world's largest food producer with regard to taxation in Kazakhstan of royalties paid to non-residents;
• advised a Kazakh airline company on the tax implications of conducting an agreement on the operational lease of an aircraft;
• providing consultations to a leading European bank on tax issues for Eurobonds, as well as potential tax risks;
• providing consultations to an uranium company on the tax treatment of interest and other payments under a loan agreement and the potential tax risks associated with the condition of a ‘gross-up’ clause;
• providing consultation to  the leading European aerospace company on tax issues involved in providing services to the Kazakhstan National Company for the design, installation and testing of aerospace equipment;
• advised on the taxation of income earned by non-residents from management, consulting services, services to provide personnel, and the application of conventions on the avoidance of double taxation; analysis of the risks of creating a permanent establishment in Kazakhstan and obligations to pay VAT for a non-resident;
• advised major telecommunications companies on the legal consequences of debt restructuring.

Corporate Taxation

• providing recommendations to ore mining companies regarding the correct assessment of property for payment of tax on property;
• providing consultation concerning taxation of branches in Kazakhstan of international pharmaceutical companies;
• advising ore mining companies about tax aspects of secondary issues of securities in the stock exchange;
• consultations regarding the creation of joint enterprise activities on delivery, installation and service of navigational and satellite equipment;
• advising an international transport company on questions of corporate taxation in Kazakhstan;
• advising a company specializing in services for oil and gas companies in connection with the taxation of supplies of equipment in Kazakhstan, rental equipment, and paying dividends to non-residents of Kazakhstan;
• preparation of a comparative analysis and recommendations for foreign investors on the forms of doing business in Kazakhstan (JST, LLP, or branch) from a tax perspective, taking into account types of activities and investor jurisdiction;
• advising an international industrial group on taxation (fiscal burden) within the framework of a plant project on starting  thermal power and its further activities;
• advising a Chinese construction company on tax issues involved in the implementation of their schemes for disposing of real estate through sale, reorganization and contribution to charter capital;
• advising the Kazakhstan branch of an international investment group on the obligation to pay VAT under a contract for rendering technical services to a non-resident legal entity of Kazakhstan;
• advising a Chinese construction company on tax issues related to the taxation of an interest-free loan for a resident legal entity of Kazakhstan;
• advising a large ore mining company in Kazakhstan on the legal grounds for adjusting the credited VAT;
• advising a large construction company on issues related to suppliers recognized as false entrepreneurs and possible legal consequences thereof.

Individual Taxation

• providing consultation relating to the  taxation of an employee program for telecommunication, ore mining and tobacco companies;
• advising ore mining companies on the subject of payments of individual income tax for foreign employees;
• analysis of outsourcing of staff agreement for foreign companies regarding  tax risks arising from  income tax of Kazakhstani employees;
• advising American companies concerning taxation income of US citizens in Kazakhstan;
• preparation of a tax report for foreigners on  income received in Kazakhstan;
• advising a major South Korean holding company on the taxation of non-resident individuals carrying out activities in Kazakhstan through concluded labour contracts and their transactions with legal entities located in Kazakhstan;
• advising individuals on the taxation of income derived from offshore jurisdictions;
• advising an international mining company and the largest European bank on an incentive program providing employees with shares and options;
• advising a Belgian IT Company on the taxation of personnel carrying out activities in Kazakhstan.

Tax Planning and Optimisation in M&A Transactions

• providing recommendations concerning tax optimization and the correctness of paying tax penalties for international holding during selling participation shares in Kazakhstani subsoil users;
• advising  ore mining companies on the tax aspects of secondary distribution of shares in the stock exchange;
• providing consultation on the organization of corporate structure in the context of more effective taxation in Kazakhstan;
• providing consultation on tax optimization in deals for buying and selling shares of an international oil and gas company;
• advising on the taxation of income obtained by an individual from a disposal of shares in a subsoil use company, and providing recommendations for optimization of taxation of the proposed transaction;
• advising a large South Korean holding company on the taxation of a purchase of shares in a Kazakh oil company;
• advising   on the taxation  of purchasing shares from a large Kazakh company that sells consumer electronics;
• providing consultation on the taxation of an asset restriction of a Kazakh investment holding company during the restructuring of its assets, including assets of subsoil users in Kazakhstan;
• advising a large Kazakh gold mining company regarding taxation in a reverse takeover transaction and the tax risks associated with the implementation of such a transaction.

Tax Due Diligence

• provision of legal expertise regarding Kazakhstani legal entities (subsoil users) for foreign investors on the subject of distribution of shares in parent companies on the stock exchange;
• legal review of the tax records of a company involved in construction works in connection with the submission of tax report documents and calculations of assessed taxes paid in previous tax periods;
• legal review of the tax records of two companies working in chemical production in terms of the correctness and accuracy of their calculations of the assessed  taxes and other obligatory payments to the budget during the past fiscal periods, and the identification of possible tax risks with recommendations for their minimization;
• legal expertise on issues of a Kazakh branch of an international company involved in oil and gas activity.

Tax Administration

• successfully representing the interests of a branch of a foreign engineering company before the tax authorities  on the subject of deregistration from accounting registration on VAT;
• full tax support in the liquidation/bankruptcy of legal entities;
• providing consultation to  a German mechanical-engineering company on the registration of representatives in Kazakhstan and the receiving of a tax payer certificate;
• successfully protecting the interests of an air company relating to an incorrect claim of the tax authorities about deregistration from accounting registration on VAT;
• representation of the  interests of a large oil company in administrative proceedings against tax authorities on the question of the non-withholding of individual income tax from payments to individuals for the last tax period;
• representation of the interests of an oil and gas company against the tax authorities on issues regarding updating its tax data base ‘INIS’;
• registration of individual entrepreneurs and legal entities as VAT taxpayers to the tax authorities;
• numerous representations of interests of large telecommunications companies in the arresting of bank accounts by tax authorities and applying of other methods of execution of tax liabilities.

Tax Accounting Policy and Special Forms of Tax Registers

Development of a tax accounting policy for:

• Oil and Gas companies, including operator of occurrence;
• major uranium mining companies;
• companies performing steel production;
• companies performing activities in the sphere of chemical production;
• companies performing technical services for marine vessels.

At the same time we also render services in updating tax accounting policy made necessary because of changes in the Tax Code.

Customs Regulations

• advice on custom payments and regimes for companies who provide maintenance services for marine vessels;
• advising  French technical-engineering companies on custom procedures during the export of goods from Kazakhstan;
• successfully appealing in court additional charged payments, duties and VAT on imports to the amount of 95 million tenge on behalf of  an ore-mining company;
• advice on custom payments and regimes for major Russian subsoil users;
• preparation of analysis of custom union legislation relating to turnovers of petroleum derivatives for Russian ore mining company;
• consultation of a large FMCG company on the potential customs duties and taxes payable upon importation of medical goods into Kazakhstan;
• advice to a large Russian subsoil user on the customs procedures, payments and benefits applicable to the territory of Kazakhstan in terms of the application of ‘tolling’ schemes;
• advising a large telecommunications company on positional customs duties, fees and VAT under the supply of equipment to Kazakhstan;
• legal assistance during customs inspection of an international telecommunications company, in particular on issues relating to customs duties for the additional delivery of goods and parts of equipment;
• advising a French company on taxation and customs issues related to the importation of space equipment in Kazakhstan;
• advising a local taxpayer on tax exemptions and customs issues related to financing by the Islamic Development Bank of the supply of agricultural equipment to Kazakhstan;
• providing consultation to an international uranium company on potential customs duties and taxes under importation of damaged equipment;
• representation and protection of the interests of a uranium company on issues related to customs fees imposed by the customs authorities of Kazakhstan to the amount of 80 million tenge;
• advising an oil company operating under a Product Sharing Agreement on issues related to customs export fees.