--- title: "Is It Possible to Conduct Tax Monitoring in Respect of a Person Engaged in Private Practice?" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-10-13 canonical: https://buhgpt.kz/suraqtar/vozmozhno-li-provedenie-nalogovogo-monitoringa-v-otnoshen-en source: BuhGPT --- # Is It Possible to Conduct Tax Monitoring in Respect of a Person Engaged in Private Practice? > **TL;DR:** Short Answer The status of a person engaged in private practice does not in itself make it possible to determine unequivocally whether that person will be subject to tax monitoring. Under the Tax Code, tax monitoring covers certain categories of taxpayers , while the specific --- Short Answer The status of a person engaged in private practice does not in itself make it possible to determine unequivocally whether that person will be subject to tax monitoring. Under the Tax Code, tax monitoring covers certain categories of taxpayers, while the specific procedure depends on the type of monitoring and the participant’s status. The Code provides for two types of tax monitoring: monitoring of large taxpayers and horizontal monitoring. Therefore, to answer this question in a specific situation, it is necessary to determine whether the person is a participant in either type of monitoring. The provisions presented do not state that every person engaged in private practice automatically becomes a monitoring participant. Nor do they contain a direct general prohibition on conducting monitoring solely because of such status. Consequently, the key factor is not the conduct of private practice itself, but whether there are grounds prescribed by law for classifying the taxpayer in the relevant category of participants. How Tax Monitoring Works Tax monitoring involves collecting and analyzing information on the activities of certain categories of taxpayers. Its purpose is to monitor compliance with the tax legislation of the Republic of Kazakhstan and transfer pricing legislation. Monitoring of large taxpayers is conducted by reviewing information and documents submitted by a participant, including at the request of the authorized body. Horizontal monitoring is based on information exchange between the authorized body and the participant. Monitoring of large taxpayers is not conducted in respect of a horizontal monitoring participant who is also included in the list of participants in the monitoring of large taxpayers. Thus, the taxpayer must first determine whether they are included in the relevant group of participants. The mere fact that a person is registered as being engaged in private practice is insufficient to reach such a conclusion. What to Do Upon Receiving a Request If a person is in fact a participant in the monitoring of large taxpayers and receives a request from the authorized body, it must not be left unanswered. The body may request documents and written explanations confirming the correctness of tax and budget payment calculations and their timely payment, as well as the financial statements of the participant and its subsidiaries. The deadline for complying with such a request is fifteen business days following the date on which it is served. If violations or discrepancies are identified as a result of monitoring, a recommendation is sent to the participant. Within fifteen business days after it is served, the participant must either remedy the specified violations and discrepancies, if the participant agrees with them, or provide an explanation that no such violations or discrepancies exist, if the participant disagrees. If the authorized body disagrees with the participant’s arguments, a reasoned decision is issued. It must be adopted no later than thirty business days after receipt of the explanation and provided to the participant within two business days after it is issued. The participant has five business days to comply with the decision, beginning on the day following the date on which it is served. Failure to comply with a reasoned decision constitutes grounds for ordering a tax audit. A prudent practical course of action is to: - check which type of monitoring the received document concerns; - establish the taxpayer’s status as a monitoring participant; - record the date on which the request, recommendation, or decision was served; - prepare documents and explanations within the scope of the questions raised; - observe the deadline calculated from the day following the date of service. What a Person Engaged in Private Practice Should Consider The Tax Code separately provides transitional provisions for persons engaged in private practice who were registered for VAT. Such persons are deregistered for VAT by the tax authority without notification from the date on which the Code enters into force. They must also submit a liquidation VAT return within ten business days from the date on which the Code enters into force. These rules concern VAT registration and reporting upon deregistration. By themselves, they neither confirm nor exclude the person’s participation in tax monitoring. Therefore, VAT and tax monitoring matters must be assessed separately by applying the provisions relevant to each procedure. Frequently Asked Questions Can the tax authority conduct monitoring solely because a person is engaged in private practice? — This does not follow from the cited provisions. It is necessary to determine whether the taxpayer falls within a category of monitoring participants prescribed by law. What types of tax monitoring are provided for? — Monitoring of large taxpayers and horizontal monitoring. How much time is allowed to respond to a request as part of the monitoring of large taxpayers? — Fifteen business days following the date on which the request is served. Is it possible to disagree with the identified discrepancies? — Yes. The participant may provide an explanation that no violations or discrepancies exist within the prescribed period. Is the automatic VAT deregistration of a person engaged in private practice related to tax monitoring? — This is a separate procedure. The VAT deregistration provision does not in itself determine participation in tax monitoring. Sources - Article 143. General Provisions on Tax Monitoring - Article 145. Procedure for Conducting Monitoring of Large Taxpayers - Article 829. Transitional Provisions Concerning a Person Engaged in Private Practice --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_