Kazakhstan: The Recent Trend Of Tax Authorities To Sink Information – Basis Of Tax Assessments

Last Updated: 1 August 2016
Article by Saltanat Kemalova

During court proceedings, tax authorities refuse to present documents that confirm tax assessments based on the confidentiality of such documents and commercial secrets.

  • Evidence in tax disputes does not meet the criteria for confidential information, including the limitation of access to the information, the commercial value of the information, the commercial interest of the owner of the information and its protection measures.
  • Failure of evidence in court violates the principle of the competitiveness and equality of the parties, the principle of taxation certainty, and the rights and obligations of the parties.
  • The submission of a petition on calling evidence is one way to protect the taxpayer's rights with respect to obtaining access to documents.

The experience of our litigation lawyers

Our litigation lawyers have encountered situations where tax authorities performing audits on transfer pricing have referred to the price quotations of officially recognized sources of information. However, in the course of tax audits and legal proceedings of tax audit appeals, the tax authorities have refused to grant access to such publications based on their confidentiality in view of the fact that the documents are freely available and can be purchased independently.

What rules are violated?

Such non-provision of evidence is unreasonable because it causes material violations of the following principles of law:

  • Principle of the competitiveness and equality of the parties

Procedural legislation establishes that the court shall create all necessary conditions and assist parties in the full and objective investigation of case circumstances.

Without documents, which are considered to be the basis of assessments, the taxpayer becomes unable to appeal the assessments, and, accordingly, there is a breach of the principle of the competitiveness of the parties and equal access to case materials.

  • Principle of taxation certainty

Pursuant to tax legislation, the principle of taxation certainty is that the basis and procedure for tax obligation shall be defined and established by the laws of the Republic of Kazakhstan.

Meanwhile, the use of information inaccessible to the taxpayer violates the principle of taxation certainty as the taxpayer is not aware of the information used by the tax authorities during tax audits and is unable to confirm or dispute it.

  • Parties' rights

P.1 of Article 47 of the Civil Procedure Code of the Republic of Kazakhstan defines a list of rights of persons participating in court proceedings. The first right is a right to review the case materials, make notes and copy them.

Therefore, if a Party submits a document containing confidential information and bases its claim on it, this evidence or document becomes a part of the case and each Party may receive it.

  • Parties' obligations

In accordance with Article 65 of the Civil Procedure Code of the Republic of Kazakhstan, each Party shall prove such circumstances to which it refers. Thus, in accordance with p. 11 of Article 66 of the CPC of the RoK, the content of each piece of evidence shall be disclosed within the court proceedings where such evidence is examined. In this context, non-provision of evidence due to its confidentiality is a breach of Chapter 7 of the CPC of the RoK, which deprives the court of the opportunity to conduct a trial effectively and comprehensively.

What falls under confidential information?

In accordance with the civil legislation of the Republic of Kazakhstan, information comprising business or commercial secrets is considered to be information that has actual or potential commercial value by virtue of its being unfamiliar to third parties, the limitation of access to such information on a legal basis and the measures taken by the owner to protect its confidentiality.

In accordance with p. 16 of Article 1 of the Law on private businesses, a commercial secret is information defined and protected by private entrepreneurs, the free access of which is limited to a set of people, and the disclosure, acquisition or usage of such information can cause adverse effects to the interests of entrepreneurs.

Thus, information is recognized as being confidential if it has the following characteristics:

  • The limitation of free access to it;
  • Its disclosure, acquisition and usage can cause damage to its legal owner;
  • Commercial value;
  • Its owner takes measures for its protection.

What to do?

In accordance with Articles 66 and 47 of the CPC of the RoK, the Party is entitled to submit a petition on calling evidence.

Given the filing of such a petition, the Party will indicate the breach of procedural rules and the court will be able to request "confidential" documents from tax authorities or recognize the claim as being unreasonable.

The court shall request the documents, indicating the terms for their provision. In case of the refusal of the tax authorities to provide documents, the court will consider the information/data as being against the interests of the tax authorities.

In case of the refusal of the court to satisfy the petition on calling evidence, the Party is entitled to appeal such refusal by bringing a private complaint at the court of appeal instance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions