TAX CODE OF THE REPUBLIC OF TAJIKISTAN

PART I. GENERAL PART

SECTION II. GENERAL ADMINISTRATIVE PROVISIONS
________________________________________________________________

CHAPTER 4. TAX AUDITS AND OTHER FORMS OF CONTROL

Article 48. The Concept and Types of Tax Audits

1. A tax audit shall refer to an inspection by tax authorities of compliance with the tax legislation of the Republic of Tajikistan. Participants in tax audits shall be tax authority officials referred to in an official order and the taxpayer.

2. Tax audits shall be performed exclusively by tax authorities in accordance with this Code.

3. Tax audits shall be broken down into the following types:

1) documentary audit;
2) field audit;
3) time-study survey.

4. Documentary audits shall be broken down into the following types:

1) comprehensive audit - an audit of compliance with the tax legislation for all types of taxes;

2) targeted audit - an audit of compliance with the tax legislation for one type of tax;

3) counter audit - an audit performed with respect to third parties in the event that in the course of performing tax audits a tax authority needs to obtain additional information regarding the proper tax accounting of transactions by a taxpayer.

5. A field audit shall be performed by tax authorities with respect to individual taxpayers to determine their observance of individual requirements of the tax legislation of the Republic of Tajikistan, namely:

1) the registration of taxpayers with tax authorities;

2) the proper application of cash registers with fiscal memory;

3) the existence of licenses and other permits;

4) observance of regulations concerning the production, bottling (packaging), storage, and sale of excisable goods.

6. Time-study surveys shall be performed by tax authorities with the aim of determining a taxpayer's actual income and actual expenses related to earning said income. Time-study surveys shall be performed following the procedure established by the authorized government body.

7. Documentary tax audits, including unscheduled ones, shall be performed by tax authorities on the basis of requests from law enforcement authorities exclusively with respect to taxpayers about whom written information has been received confirming that a criminal case has been filed in connection with evidence of tax-related crimes, in accordance with the legislation of the Republic of Tajikistan.

8. The performance of a tax audit must not suspend the taxpayer's activities, except in those cases established by legislative acts of the Republic of Tajikistan.

9. A tax authority shall have the right to audit separate subdivisions of a legal entity regardless of whether an audit of the parent legal entity itself is performed.

Article 49. Frequency of Tax Audits

1. Tax audits shall be performed with the following frequency:

1) comprehensive audits shall be performed no more than once a year;

2) targeted audits shall be performed no more than once every six months with regard to the same type of tax.

If a comprehensive audit of a taxpayer has been performed in a tax year, targeted audits shall not be performed with respect to the same taxpayer for 12 months from the date the comprehensive audit was completed.

Payers of the tax paid under the simplified system and payers of the uniform tax for producers of agricultural products in accordance with Chapters 41 and 42 of this Code shall be subject to comprehensive tax audits no more than once every two years, and to targeted audits no more than once a year.

2. Tax audits focused on specific taxes shall be performed on the basis of tax periods that have ended.

3. The restrictions provided for under item 1 of this article shall not apply to the following cases:

1) when documentary tax audits are conducted in connection with the reorganization or liquidation of a legal entity and the termination of operation of an individual entrepreneur, and also in the event of removal from registration for the value-added tax on the basis of a taxpayer's request. In this case an audit must be initiated no later than 30 calendar days after the receipt of the taxpayer's request;

2) when documentary audits are conducted in connection with the expiration of a contract for the use of mineral resources;

3) when counter audits are performed;

4) when targeted audits are conducted on the basis of a taxpayer's request to verify the correct amount of value-added tax for which a refund has been requested;

5) when supplemental audits are conducted on the basis of a decision by a body reviewing a taxpayer's appeal regarding notification of a tax audit report;

6) when unscheduled documentary audits are conducted in accordance with an order issued by the first director of the authorized government body (or an authorized official acting in his place) with respect to an individual taxpayer, and also on those grounds provided for under item 7 of Article 48 of this Code.

Tax authorities may conduct counter audits only on the basis of a separate order issued by the first director (or an official acting in his place) permitting the performance of the principal audit.

4. Tax authorities shall be prohibited from performing repeat documentary tax audits of a tax period that has already been audited, with the exception of cases in which such an audit (within the statute of limitations established under Article 86 of this Code) is performed in connection with the reorganization or liquidation of a legal entity-taxpayer or by a higher-level tax authority (the authorized government body) provided there are sufficient grounds for doing so, for the purpose of monitoring the activities of the tax authority that performed the audit, and also on the basis of subitem 5) of item 3 of this article or on the basis of a written request from the taxpayer.

In the event that additional taxes are assessed in the course of a repeat documentary audit of a tax period that has already been audited, the taxpayer shall be exempt from liability in the form of penalties and interest established by this Code with respect to these tax obligations, for the period from the moment such tax obligations are incurred until the additional assessment takes place during the repeat documentary tax audit. A taxpayer shall not be exempt from the requirement to transfer the additional tax payments to the appropriate budget in a timely manner (within the established deadline).

Article 50. Deadlines for the Performance of Tax Audits

1. The deadline for the performance of tax audits specified in orders that are issued must not exceed 30 business days from the date the order is presented, except as otherwise provided by this article.

2. When a tax audit is performed of a legal entity that has a separate subdivision, as well as taxpayers that are registered with the Tax Inspectorate for Large Taxpayers, the deadline for the performance of a tax audit may be set by a tax authority at up to 60 business days.

3. The time counted toward the deadline for performance of a tax audit shall be suspended by the period of time between the moment that a taxpayer receives requests from the tax authority to provide documents and the taxpayer's presentation of the documents requested in process of the tax audit, and also by the period of time required to obtain information and documents from third parties at a tax authority's request.

4. The deadlines for the performance of time-study surveys shall be established in accordance with the procedure for the performance of time-study surveys established by the authorized government body.

Article 51. Grounds for the Performance of a Tax Audit

1. An order containing the following details shall serve as the grounds for the performance of a tax audit:

1) the date and registration number of the order at a tax authority;

2) the name of the tax authority that issued the order;

3) the full name of the taxpayer;

4) the taxpayer identification number;

5) the type of audit;

6) the titles, last names, first names, and patronymics of the persons performing the audit;

7) the deadline for performance of the audit;

8) the tax period being audited in the case of documentary audits.

2. When field audits are called for, the order must indicate the physical area that is to be inspected, issues that are to be clarified in the course of the audit, as well as information specified under item 1 of this article, with the exception of subitems 3), 4), and 7).

3. When targeted and counter audits are called for, the order shall specify the type of tax being audited.

4. An order must be signed by the first director of a tax authority or an authorized official acting in his place and it must be certified by the official stamp and recorded in a special ledger in accordance with the procedure established by the authorized government body.

5. Only one audit may be performed on the basis of a single order.

Article 52. Beginning of a Tax Audit

1. The moment that a taxpayer (tax agent) is presented with an order shall be considered the beginning of a tax audit.

2. Tax authority officials performing a tax audit shall be required to present a taxpayer (tax agent) with their official identification and to make an entry to this effect in the Registration Book of Audits of Economic Entities.

3. A tax authority official performing a tax audit, with the exception of field audits, shall present the taxpayer with the original copy of the order. A notation shall be made by the taxpayer (tax agent) in a copy of the order indicating that he has read the order and received a copy.

4. When field audits are performed, the taxpayer shall be presented with the original copy of the order for review and a copy thereof shall be given to the taxpayer, which has been signed by the tax authority official performing the audit. A notation shall be made by the taxpayer, along with his signature, indicating that he has read the order and received a copy.

5. A refusal by a taxpayer (tax agent) to accept an order shall not serve as grounds for cancellation of a tax audit.

Article 53. Access by Tax Authority Officials to Grounds or Premises for the Performance of a Tax Audit

1. A taxpayer shall be required to grant access to tax authority officials performing a tax audit to grounds or premises (other than residential premises) used to earn income, or to objects of taxation and objects related to taxation, for inspection purposes.

2. A protocol shall be drawn up in the event that tax authority officials performing a tax audit are hindered from gaining access to said grounds or objects of taxation or objects related to taxation, or to premises (other than residential premises).

3. A protocol shall be signed by the tax authority officials performing a tax audit and by the taxpayer (tax agent). In the event of a refusal to sign said protocol, the taxpayer (tax agent) shall be required to provide a written explanation of the reasons for the refusal. If a taxpayer refuses to provide a written explanation of the reasons for not signing a protocol, the tax authority officials performing a tax audit shall draw up a report on the taxpayer's refusal to sign the protocol in the presence of two witnesses, and the report shall be signed by these officials and the witnesses and measures shall be undertaken as provided for by this Code.

4. Tax authority officials must carry with them special passes if such passes are required for access to the grounds or premises of a taxpayer in accordance with legislative acts of the Republic of Tajikistan.

5. A taxpayer shall have the right not to allow access to grounds or premises by tax authority officials for the performance of a tax audit if:

1) there is no order or an order has not been presented or has not been drawn up following the established procedure;

2) the time period for performing the audit as indicated in the order has not yet arrived or has expired;

3) the given persons are not mentioned in the order;

4) the documents requested do not pertain to the tax period being audited;

5) the tax authority officials have refused to make an appropriate entry regarding the tax audit in the Registration Book of Audits of Economic Entities.

6) there are no special passes as referred to under item 4 of this article.

Article 54. Seizure of Documents

The seizure of documents shall be carried out in accordance with this Code and legislative acts of the Republic of Tajikistan.

Article 55. Completion of a Tax Audit

1. Upon completion of a tax audit tax authority officials shall draw up a tax audit report indicating:

1) the location of the tax audit and the date the report was drawn up;

2) the type of audit;

3) the titles, last names, first names, and patronymics of the tax authority officials performing the audit;

4) the last name, first name, and patronymic or the full name of the taxpayer (tax agent);

5) the location and bank details of the taxpayer (tax agent), as well as the taxpayer identification number;

6) the last names, first names, and patronymics of the manager and officials of the taxpayer (tax agent) who are responsible for maintaining tax records and accounting and for the payment of taxes to the budget;

7) information about previous audits and measures taken to remedy violations of the tax legislation of the Republic of Tajikistan previously identified;

8) the tax period being audited and general information about documents presented by the taxpayer (tax agent) for performance of the audit;

9) a detailed description of the tax violation with a reference to the relevant provision of the tax legislation of the Republic of Tajikistan;

10) the results of the tax audit.

2. A tax audit shall be considered completed on the date on which the taxpayer is presented with a tax audit report or the date on which a tax audit report is sent to him by registered letter with a return receipt in the event that the taxpayer (tax agent) refuses to accept the tax audit report, but not later than five business days from the deadline specified in the order.

3. In the event that no violations of the tax legislation are identified upon completion of a tax audit, a notation to this effect shall be made in the tax audit report.

4. The required copies of documents, calculations performed by a tax authority official, and other materials obtained in the course of a tax audit shall be attached to a tax audit report.

5. At least two copies of a tax audit report shall be prepared and signed by the tax authority officials who performed the tax audit and by the taxpayer.

6. One copy of a tax audit report shall be presented to the taxpayer (tax agent). Upon receipt of a tax audit report a taxpayer (tax agent) shall be required to make a notation on and sign the other copy of the report indicating that he has received a copy.

If a taxpayer (tax agent) has refused to accept a tax audit report, a note to this effect shall be made on the copy of the tax audit report kept by the tax authority, which shall be confirmed by the signatures of the tax authority officials who performed the tax audit. In this case the tax audit report shall be sent to the taxpayer (tax agent) by registered letter with a return receipt.

7. A tax audit report shall be recorded in a special ledger for the recording of tax audit reports and orders, which is maintained at each tax authority and must be numbered, bound, and sealed with the official stamp of the tax authority. The form and procedure for maintaining this special ledger, as well as the procedure for the storage of tax audit reports, shall be determined by the authorized government body.

Article 56. Decision Based on Tax Audit Results

1. Upon completion of a tax audit, based on the results reflected in the tax audit report, a tax authority shall issue a notification under the signature of the first director of the tax authority or a person serving in his place, indicating the amount of taxes, penalties, and interest assessed, which shall be sent to the taxpayer (tax agent) within 10 business days of the date on which the tax audit is completed.

2. A tax authority shall register the notification of the amount of taxes, penalties, and interest assessed and the tax audit report under the same number.

3. A notification of the amount of taxes, penalties, and interest assessed must contain the following information:

1) the date and registration number of the notification and the tax audit report;

2) the last name, first name, and patronymic or full name of the taxpayer;

3) the taxpayer identification number;

4) the amount of taxes assessed, including interest and penalties;

5) a request for payment and the payment deadlines;

6) details regarding the taxes in question (account numbers to which the assessed amounts should be posted);

7) the deadlines and place for filing an appeal.

4. A taxpayer who has received a notification of the amount of taxes, penalties, and interest assessed must comply with the notification by the deadlines specified therein, unless the taxpayer has filed an appeal of the results of a tax audit.

5. In the event that no violations of the tax legislation are identified upon completion of a tax audit, the taxpayer shall also receive a notification to this effect.

Article 57. The Concept of In-House Control

In-house control shall refer to control performed directly by a tax authority based on a study and analysis of tax returns submitted by a taxpayer and other documents. In-house control shall be performed directly at a tax authority's offices.

Article 58. Results of In-House Control

1. In-house control shall be performed by authorized officials of a tax authority in accordance with their official duties, without any special decision (order) from the director of the tax authority.

2. In the event that a tax authority identifies errors in tax returns, discovers inconsistencies in the information contained in tax returns, and also if the indicators specified for payers of the tax paid under the simplified system are exceeded, a notification shall be sent to the taxpayer to allow for the independent correction of the errors that have been made, as well as notification of conversion to the generally established taxation procedure. The additional assessment of taxes arising from errors identified in the course of in-house control shall be performed only by the tax authority with which the taxpayer is registered.

Article 59. Application of Cash Registers with Fiscal Memory

1. On the territory of the Republic of Tajikistan monetary settlements effected with consumers involving the sale of goods or performance of services by means of cash, bank payment cards, and checks shall be performed with the mandatory application of cash registers with fiscal memory, and a receipt must be issued to the consumer.

The provision of this item shall not apply to monetary settlements:

1) by individual entrepreneurs (with the exception of those selling excisable goods):

- doing business on the basis of a patent;

- if six months have not passed since the date of the taxpayer's state registration as an individual entrepreneur (with the exception of one doing business on the basis of a patent)

2) by taxpayers that are related to performing services for the public in which receipts, tickets, coupons, postal payment stamps, or other registered high-security documents equivalent to checks are issued following forms established by the Republic of Tajikistan Ministry of Finance;

3) attorneys, physicians, and other persons in free professions as determined by the Republic of Tajikistan government;

4) individuals who are exempt from the income tax in accordance with subitems 12) and 13) of Article 141 of this Code and who are engaged in the sale of agricultural goods of their own production at public markets and at other specially designated sites outside permanent premises.

2. The procedure for the application of cash registers with fiscal memory shall be established by the Republic of Tajikistan government.

3. Cash registers with fiscal memory shall refer to electronic devices with a fiscal memory unit and/or bank computer systems used for the recording of cash settlements with consumers involving the sale of goods and performance of services, which provide unalterable monthly recording and long-term storage of information that is not dependent on power. The authorized government body, in consultation with the Republic of Tajikistan Ministry of the Economy and Trade, shall establish a State Registry of Cash Registers with Fiscal Memory that are approved for use on the territory of the Republic of Tajikistan.

4. In the event of a technical malfunction of a cash register with fiscal memory or an electric power failure, it shall be permitted to use and issue to buyers receipts for goods following the procedure provided for under subitem 2 of item 1 of this article.

Article 60. Requirements for the Application of Cash Registers with Fiscal Memory

The following requirements shall be established for the application of cash registers with fiscal memory:

1) prior to being put into operation, cash registers with fiscal memory must be registered with the tax authority serving the area in which business is to be conducted;

2) a receipt must be provided from a cash register with fiscal memory;

3) tax authorities must have access to a cash register with fiscal memory.

Article 61. Tax Control to Ensure Compliance with the Procedure for the Application and Use of Cash Registers with Fiscal Memory

Tax authorities:

1) shall monitor compliance with the procedure for the application and use of cash registers with fiscal memory;

2) shall use data stored in the fiscal memory units of cash registers with fiscal memory when conducting tax audits.

Article 62. Control of Excisable Goods

1. Excisable goods shall be subject to sealing with excise stamps following the procedure and under the conditions determined by the authorized government body.

2. The manufacturers and importers of excisable goods shall be responsible for applying excise stamps to excisable goods.

3. Following the procedure established by the authorized government body, a tax authority shall monitor compliance by the manufacturer of excisable goods with the regulations for the stamping of certain types of excisable goods.

4. A tax authority shall establish excise posts on the grounds of a taxpayer engaged in the production of excisable goods, following the procedure established by the Republic of Tajikistan government.

5. If imported excisable goods are supposed to be sealed with excise stamps, customs authorities of the Republic of Tajikistan shall be prohibited from processing these goods under the release of goods for free circulation, the duty-free shop, the free customs zone, and the free warehouse customs regimes without the prior application of the appropriate excise stamps.

Article 63. Monitoring of Authorized Bodies

Tax authorities shall monitor authorized bodies to ensure the proper calculation, full collection, and timely transfer of taxes and other compulsory payments to the budget.

Back>>