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The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to co-operate with other tax administrations in accordance with the internationally agreed standard. The standard provides for exchange of information on request where it is foreseeably relevant to the administration and enforcement of the domestic tax laws of the requesting jurisdiction. Effective exchange of information requires that jurisdictions ensure information is available, that it can be obtained by the tax authorities and that there are mechanisms in place allowing for the exchange of that information. The Global Forum's peer review process examines both the legal and regulatory aspects of exchange (Phase 1 reviews) and the exchange of information in practice (Phase 2). The EOI Portal will track the development of these peer reviews, including changes that jurisdictions make in response to the Global Forum's recommendations.

Peer Review: Kazakhstan Phase 1 Review

This report for Kazakhstan has been published on 27 May 2015. You can buy this report, or browse it online below.

Skip directly to the Executive Summary. You may also want to view the tables of determinations and ratings.


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Determinations and Recommendations

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Ownership information on foreign companies having place of effective management in Kazakhstan is not consistently available.  Kazakhstan should ensure that ownership information on foreign companies with sufficient nexus with Kazakhstan is available in all cases. 
Kazakhstan’s law does not require that identification of partners in a foreign partnership that carries on business in Kazakhstan or has income, deductions or credits for tax purposes in Kazakhstan is in all cases available in Kazakhstan.  Kazakhstan should ensure that information identifying the partners in a foreign partnership that carries on business in Kazakhstan or has income, deductions or credits for tax purposes in Kazakhstan, is available to its competent authority. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is not in place.   It is not clear how Kazakhstan’s tax authority access powers are legally applied in cases where information is requested for exchange of information purposes, especially in cases where there is no domestic tax at stake and the treaty prevails rule cannot be applied for exchange of information under the respective treaty.  Kazakhstan should clarify its law to ensure that its competent authority has the power to obtain the relevant information pursuant to requests under all exchange of information agreements. 
Access to banking information under Kazakhstan’s domestic law is restricted regarding the persons whose bank accounts information can be requested by the tax authority and the type of the information which may be requested.  Kazakhstan should ensure that its competent authority has access powers in respect of all banking information requested by its EOI partners. 
There are no effective enforcement measures and sanctions applicable in cases where a taxpayer fails to provide information requested by the tax authority and no domestic tax is at stake.  Kazakhstan should ensure that its law provides for effective enforcement measures and sanctions applicable in cases where the requested information is not provided.  
Protection of information held by lawyers and notaries provided under Kazakhstan’s law is too wide as it covers all information received by them in connection with their professional activities.   Kazakhstan should take measures to ensure that the protection of information held by lawyers and notaries is consistent with the standard. 
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is not in place.   Kazakhstan’s competent authority’s access powers and enforcement measures for exchange of information purposes are not explicitly provided by law especially in cases where there is no domestic tax interest in the requested information.   Kazakhstan should clarify its law to ensure that its competent authority has the power to obtain the relevant information pursuant to requests under all exchange of information agreements. 
As a result of domestic law limitations with respect to access to banking information, Kazakhstan does not have EOI relationships in line with the standard with its EOI partners.  Kazakhstan should ensure that all its EOI relationships provide for exchange of banking information to the standard. 
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Kazakhstan has a comprehensive network of EOI arrangements with relevant partners but the issues identified in respect of element B.1 need to be addressed.  Kazakhstan should ensure it gives full effect to the terms of its EOI arrangements in order to allow for full exchange of information to the standard with all its relevant partners. 
  Kazakhstan should continue to develop its exchange of information network with all relevant partners. 
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Kazakhstan’s EOI agreements do not define the term “professional secret” and the scope of the term under its domestic law is wider than permitted by the international standard.  It is recommended that Kazakhstan limits the scope of “professional secret” in its domestic law so as to be in line with the standard for exchange of information. 
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.