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Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Kazakhstan 2015

Phase 1: Legal and Regulatory Framework

In series:Global Forum on Transparency and Exchange of Information for Tax Purposes: Peer Reviewsview more titles

Published on May 26, 2015

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The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 120 jurisdictions which participate in the work of the Global Forum on an equal footing.

The Global Forum is charged with in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004, which has been incorporated in the UN Model Tax Convention.

The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. “Fishing expeditions” are not authorised, but all foreseeably relevant information must be provided, including bank information and information held by fiduciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard.

All members of the Global Forum, as well as jurisdictions identified by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined – Phase 1 plus Phase 2 – reviews. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes.

Key findings

The Phase 1 review of Kazakhstan found that crucial elements of legal framework needed for appropriate implementation of the international standard are not in place. Kazakhstan is therefore recommended to act on the recommendations made in the report before it moves to the Phase 2 review. The main identified deficiencies concern use of tax authority’s access powers for exchange of information purposes. Other elements including availability of ownership, accounting and banking information are nevertheless implemented in Kazakhstan’s law. It is also noted that Kazakhstan signed and ratified the multilateral Convention on Mutual Administrative Assistance in Tax Matters and is ready to address the identified deficiencies promptly. For further information on the exchange of information practice of Kazakhstan and to read the full report click here.