AEQUITAS Successfully Protected the Client's Interests in the Kazakhstan Ministry of Finance in Connection with an Appeal Against the Tax Inspection Results

We are happy to share that May 2024 marked the issuance of a final resolution on cancellation of a fine and additional tax charges in the total amount of more than KZT 65 mln imposed on AEQUITAS client, a major distributor of highly qualified German medicines, therapeutic and natural beauty products.

When working on this project, AEQUITAS team represented the company in the Kazakhstan Ministry of Finance in connection with an appeal against the tax inspection, which resulted in additional VAT imposed on the company in the amount of more than KZT 45 mln and a fine in the amount of more than KZT 21 mln.

The specific interest of this case is connected with the Tax Code rule on VAT payment differently interpreted by the company and the tax authority, which entailed relevant difficulties.  The tax authority incorrectly interpreted the tax legislation provisions, considering that VAT must be paid.  The position of AEQUITAS was that VAT had not to be paid in light of the fact that the supplier has no legal presence in Kazakhstan and the place of sale of the marketing services was not Kazakhstan.  Accordingly, pursuant to provisions of the Tax Code, the company lawfully did not apply VAT to the sale of marketing services.

Due to convincing arguments and high-level preliminary work, AEQUITAS lawyers managed to successfully appeal the notice of the inspection results.   This led to cancellation of the additional charges in the amount of more than KZT 45 mln and the fine in the amount of KZT 21 mln.

"Such result of good teamwork confirms highly professional approach and ability to effectively represent the interests of clients in complicated financial and legal disputes" shared Kristina Mychka, AEQUITAS dispute resolution lawyer.