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Tax Disputes

The imperfection of the current tax legislation, including the legislation for the past years, generates many tax disputes between taxpayers and tax authorities. The specialists of GRATA are not only fully versed in the rules of tax law, but are also professional in the rules of court procedure. The tax team of GRATA has solid experience in all aspects of tax practice:

• contesting the results of a tax audit - notification on assessed taxes, fees and fines;
• contesting the administrative acts of tax authorities - decisions on imposing administrative charges;
• contesting other illegal actions and omissions of the tax authorities.

Services on contesting include the collection of evidence for a case, preparing the drafts of appeal and claim, representing the interests of a taxpayer in superior tax authorities, courts and other state bodies.

At the same time, we render services on assistance during tax audit and represent the interests of our clients during inspections performed by state security bodies and the prosecutor’s office related to breaches of tax law.

VAT Refund from the State Budget

GRATA also provides services related to the protection and representation of the interests of clients in disputes relating to the refusal of tax authorities to refund VAT already paid in the budget. As part of this service, our tax professionals will be glad to help:

• prepare and assess documents on their compliance to tax legislation;
• collect evidence required for the VAT refund;
• prepare recommendations to determine the VAT amount that should be refunded;
• represent and protect the interests of our client during the tax audit;
• contest illegal actions made in the refusal to refund.

Taxation of Subsoil Users

The specificity and complexity of the tax regimes for subsoil users, including the special tax regimes for Production Sharing Agreements, lead to particular difficulty in their application in practice.

GRATA lawyers are experienced and capable in guidance through the calculation and payment of taxes and special payments of subsurface users, including excess profits tax and taxes on extracting mineral resources and bonuses. We also help our clients deal with the issues of tax stability, especially concerning details of previous tax legislation and their interaction with the requirements of current legislation, including the issues of hedging, which are applicable to the tax regime for subsoil users operating under Production Sharing Agreements and separate subsoil use contracts.

International Taxation

The complexity of International Tax Law, including the Convention on the Avoidance of Double Taxation, and peculiarities in the taxation of non-residents in Kazakhstan, raise many questions for which GRATA specialists can provide clear answers.

We consult on issues of the permanent establishment of non-residents, tax optimisation of income of non-residents from sources in Kazakhstan, corporate structure and structure of transactions from a tax perspective, and refunds of income tax and the opening of conditional bank deposits.

Corporate Taxation

GRATA also provides expertise in the taxation of legal entities, which primarily entails major taxes such as CIT and VAT, property tax, vehicle tax, land tax, excise and other taxes, fees in the budget payable by Corporations. Our experts have the highest available knowledge in:

• the correctness of the execution of a company’s obligations under the tax code, and the minimisation of tax risks thereby entailed;
• questions on the application of the rules of "thin capitalisation», CFC rules, and risks associated with inspections of transfer pricing;
• tax planning and tax optimisation through optimal solutions, the development of effective internal tax policy in tax accounting and the application of tax benefits;
• the choice of a business form (legal entity of subdivision) for business operations which is optimal for tax purposes.

Individual Taxation

As part of its tax services, the GRATA tax team also specialises in the taxation of individuals. GRATA specialists have experience advising on personal income tax, including the income of individual entrepreneurs derived from Kazakhstan and foreign sources, especially in such issues such as:

• which taxes should be paid;
• applicable tax rates, the possibility of applying the Convention on Avoiding Double Taxation or applying tax exemptions;
• the procedure for preparing and submitting tax report documents;
• the choice of the optimal tax regime for entrepreneurs;
• possible legal consequences in case of violation of tax laws;
• protection and representation of our client’s interests in courts, tax authorities and bodies of law enforcement.

We also have extensive experience advising on matters related to the taxation of incentive programmes for employees (Share Incentive Plans).

Tax Planning and Optimisation in M&A Transactions

Companies at various stages of their development can take decisions on business expansion, improvement of corporate structure, changes in business operations and activity, all of which are realised in the form of «Mergers & Acquisitions» transactions. Such transactions’ tax component could have impact on their basic structure.  While planning the transaction, the seller and the buyer should seek the optimum way to transfer business to a new owner.

This service includes developing different optimal disposal schemes in terms of minimising the tax burden and reducing total risks, preparing and defending the positions of the client on the evaluation of the company and the conditions of the deal, participation in negotiations on the realisation of the project of M&A.

Tax Due Diligence

As part of legal support in M&A transactions, GRATA also provides services in Tax Due Diligence.  As we know, the purpose of conducting such a Due Diligence is to make an analysis of the company in terms of tax risk and possible violations of tax laws. Simultaneously, an evaluation of the risk of potential claims by tax authorities and the preparation of practical recommendations to minimise such risks are also included in our services.

Tax Due Diligence includes evaluation of the validity of tax base, evaluation of the applied  tax exemptions, assessment of the correctness of applied conventions on the avoidance of double taxation, definition of certain tax risks to the company and the provisions of solutions to mitigate them and calculation of consequences in case of the breaching of tax legislation.

Our tax team is also pleased to provide services for Tax Review - a legal expertise of the proper and timely fulfillment of tax obligations of a company, i.e. a legal review of the tax records of the company in order to avoid risks or negative results.

Tax Administration

In order to prevent tax offenses, our specialists advise on the quality of implementation and enforcement of tax obligations, including:

• registration as a taxpayer at the tax authorities and registration as VAT payer;
• registration as an entrepreneur;
• preparation and submission of tax statements in a timely manner;
• the calculation and payment of taxes, including the assessment of tax authorities to impose an arrest on bank accounts, penalties or the disposal of property;
• other aspects of tax administration.

The GRATA tax team can also represent your interests in the  tax authorities on these matters.

Tax Accounting Policy and Special Forms of Tax Registers

As you know, the Tax Code states that taxpayers should develop and approve their tax accounting policy and that tax registers should be submitted to the tax authority.

GRATA team experts are ready to provide services on the development and preparation of tax accounting policy and special forms of tax registers, and to prepare amendments and additions to existing documents in terms of changes in the tax legislation of Kazakhstan.   

Сustoms Regulations

International transactions are an essential part of most companies operating in Kazakhstan. The import and export of goods (works, services), or, for example, the temporary importation of equipment, raises questions of the payment of VAT, excise duties, customs fees and duties, including issues related to the functioning of the Customs Union.  The Tax Department of GRATA can advise on potential customs fees and obligations in connection with the Customs Union and can help choose the best customs procedure for the delivered goods.