Following a comprehensive tax audit for the period 2017-2021, the tax authority assessed a major trading company in Astana with CIT of 104.4 million tenge and VAT of 60.2 million tenge. The basis for the assessments was the adjustment of deductions on transactions with a supplier whose state registration was declared invalid by the court. The tax authorities excluded rental expenses for trading premises from deductions, citing the formal absence of the counterparty's right to conduct business activities.
The GK and Partners team secured a complete cancellation of the tax assessments. The appellate court supported our client's position and declared all assessments arising from the audit of disputed transactions unlawful.
The key success factor was proving the actual receipt of trading premises rental services. Despite the lessor's state registration being declared invalid, we presented comprehensive evidence of the reality of business operations: lease and sublease agreements, acceptance-transfer acts, payment documents, witness testimonies, and independent auditor conclusions.
This decision confirmed an important legal principle: tax legislation provides for the taxpayer's right to defend their position by proving actual receipt of goods, works, and services, even in the presence of formal violations by the counterparty. The court found the tax authority's arguments about the impossibility of such proof when appealing audit results to be unfounded.
