«Agreed»
Head of SRD of EKR
_____________Bimagambetov S.S.
«28» may  2025

Analytical report on conducting an internal analysis of the risks of corruption of the SRD of EKR

Ust-Kamenogorsk city                                                                                                        28. 05.2023

I.Introduction

 
Working group of the State Revenue Department of East -Kazakhstan region (hereinafter - the Department) conducted an internal analysis of risks of corruption in the activities of the structural divisions of the Department based on the order of the head of the SRD of EKR dated 14.03.2025 No. 71.

In accordance with the model rules, the internal analysis of risks of corruption of the Department was carried out in the following areas:

Identification of corruption risks in regulatory legal acts affecting of the SRD of EKR.

Identification of corruption risks in organizational and administrative activities of the Department and its territorial divisions.

Regulatory legal acts affecting the activities of the division identify discretionary powers and standards facilitating the commission of corruption offences.

Internal analysis of corruption risks was conducted in the period from 01.05.2024 to 01.05.2025.

The analysis of corruption risks was conducted by the working group, while independent experts (specialists) were not involved.

Identification of corruption risks in the organizational and administrative activities of the Department and its territorial divisions was carried out on the following topics:

1)human resource management, including identification of positions subject to corruption risks;

2)resolving conflicts of interest;

3)provision of public services;

4)regulatory powers;

5)oversight and auditing functions;

6)development and distribution of budgetary and financial resources;

7)signing of contracts with individuals and legal entities;

8)development and operation of information systems;

9)other issues arising from the organizational and administrative activities of the object of analysis.

II.Descriptive part

 1.Human resource management, including identification of positions subject to corruption risks

The internal analysis of organizational and administrative activities showed that human resource management in the SRD of EKR and its territorial divisions is carried out in accordance with the current legislation of the Republic of Kazakhstan: Labor Code of the Republic of Kazakhstan, Laws of the Republic of Kazakhstan "On Public Service in the Republic of Kazakhstan", "On Combating Corruption", as well as other laws and subordinate regulatory legal acts.

The total staff of the state revenue bodies of the region as of 01.05.2025 is 495 persons (the actual number is 464 persons), including Department's - 257 persons (the actual number is 244 persons), territorial state revenue bodies - 238 persons (the actual number is 220 persons).

For the period from May 01, 2024 to May 01, 2025, 92 people have changed in the state revenue bodies of the region (in the Department – 40 people, territory - 52 people), including 19 people due to mobility within the state body, 8 person was dismissed in connection with the transition to another state body, net staff turnover is 65 people (19 of whom have other reasons).

In the period from May 01, 2024 to May 01, 2025, 107 officials were brought to disciplinary responsibility.

Offences discrediting the civil service for the period from 01.05.2024 to 01.05.2025 have not been identified.

From May 01 to May 01, 2025, 6 officials were brought to disciplinary responsibility for violations of the standards of the Ethics Code of civil servants.

The study of the processes of passing public service in the SRD of EKR and its territorial divisions (organizing competitions for recruitment, imposing disciplinary penalties, retraining and advanced training, mentoring, etc.) showed that they generally comply with the established requirements of the legislation on public service

In the course of the conducted analysis on human resource management issues, corruption risks were not identified in the activities of the Department.

2.Resolving conflicts of interest

Ethical control in the public service is an important mechanism for the prevention of corruption, violation of the service ethics and 2 resolving conflicts of interest.

This was facilitated by the introduction of Institution of ethics commissioners, which led to the further formation of conditions for higher discipline and responsibility of civil servants, as well as an additional mechanism for combating corruption.

In the Department, the functions of the Ethics Commissioner are assigned to the Deputy Head of the Department.

During the analysis of the activities of the Ethics Commissioner for the period from May 01, 2024 to May 01, 2025, it was established that the Ethics Commissioner of the Department carried out work within the objectives and functions imposed by the Regulation on the Ethics Commissioner approved by the Decree of the President of the Republic of Kazakhstan No.153 dated December 29, 2015 (hereinafter - the Regulation) during the reporting period. Regarding the identification of a conflict of interest, no written appeals about perceived conflicts of interest or the possibility of its occurrence have been revealed according to the submitted quarterly reports.

In accordance with subpara. 9, p 4 of the Regulation, the Ethics Commissioner is obliged to interact with civil society institutions and state bodies in order to prevent and prohibit the legislation of the Republic of Kazakhstan in the areas of public service, anti-corruption and the Code of Ethics, as well as formation of a positive image of the public service.

Thus, the Ethics Commissioner of the Department is working to explain the legislation of the Republic of Kazakhstan in the public service, prevention of corruption, the Code of Ethics.

The Ethics Commissioner of the Department carries out personal reception of citizens to the schedule of reception of individuals, representatives of legal entities posted on the internet resource of the Departement, which corresponds to paragraph 9 of Section 3 of the Regulations.

Ethics Commissioner of the Department held 11 meetings for the period from May 01, 2024 to May 01, 2025.

In the period from May 01, 2024 to May 01, 2025, the Ethics Commissioner of the Department conducted a survey of 68 employees of state revenue bodies.

The analysis has shown the transparency of the activities of the Ethics Commissioner of the Department.

No corruption risks have been identified in the Department's activities regarding resolving conflicts of interest.

3.Provision of public services

The Department provided 638 338 public services in the period from May 01, 2024 to May 01, 2025, including 458 626 for individuals and 179,712 for legal entities. The number of services in electronic form is 634 179 или 99,3%, on paper is 4179 or 0.7%.

During the analysis, it was found that public services provided on paper comply with the legislation of the Republic of Kazakhstan.

For example, one of the public services provided by the Department is "Issuance of a license for the storage and retail sale of alcoholic beverages, with the exception of activities for the storage and retail sale of alcoholic products in the territory of its production."      

Thus, in order to obtain a license for the storage and retail sale of alcoholic beverages, with the exception of activities for the storage and retail sale of alcoholic products in the territory of its production, the applicant provides the necessary documents.

In the period from May 1, 2024 to May 1, 2025, the Department issued 380 licenses for the storage and retail sale of alcoholic beverages and 5 licenses for the storage and wholesale sale of alcoholic beverages.

In addition, there were no reasoned refusal for to further consider the application not complying with qualification requirements during this period.

During the analysis, it was found that the license is issued through the E-Government web portal www.egov.kz in the e-license application, excluding direct contact between the licensee and the service provider. The provision of the service in electronic form excludes the occurrence of corruption risks.

Corruption risks were not identified during the internal analysis of corruption risks on the provision of public services in the activities of the department.

4.Regulatory powers

During the internal analysis of corruption risks on the implementation of regulatory powers in the activities of the Department, corruption risks were not identified.

5.Oversight and auditing functions

1.Risk description: Paragraph 3 of Article 100 of the Tax Code provides for the provision to the registering authority of information on the absence (presence) of debts, which are recorded with the tax authority in the event of liquidation of a legal entity or termination of the activities of a branch (representative office) of a foreign legal entity, subject to the conditions established by Articles 58, 59 and 60 of the Tax Code.   Thus, when a legal entity submits an application for liquidation to the registration authority, a request for information is automatically generated in the IS CUPA.

At the same time, when processing a request, the employee has the opportunity to form a refusal for the following reasons: "failure to provide a liquidation balance sheet", "failure to provide a bank certificate on closing existing bank accounts", "failure to provide a certificate of registration for VAT or an explanation in case of its loss or damage", "failure to fulfill tax obligations", "absence or failure to complete a documentary check in connection with the liquidation of a legal entity", "lack of an opinion on the results of desk control during the simplified liquidation of a legal entity". 

In turn, this requirement, namely, the provision of information is not provided for in the reorganization of legal entities, according to Article 64 of the Tax Code.

At the same time, in practice, there were cases when a legal entity simultaneously applied for reorganization through separation to the state revenue authorities and to the Non-profit Joint Stock Company. Accordingly, the Non-profit Joint Stock Company sent a notice for de-registration.

Subsequently, since the Information System and the Tax Code do not provide for the provision of information, the legal entity is reorganized if there is an incomplete documentary check.

Recommendations to eliminate risks: To amend Article 100 of the Tax Code, in terms of inclusion in paragraph 3 in case of liquidation of legal entities in accordance with Article 64 of the Tax Code, with the introduction of appropriate improvements to the information system.

Form of completion: Amendments to the Tax Code and improvements to the information system.

According to the response of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (hereinafter - the Committee)  SRD number-11-1-18/15412-MKK dated 17.04.2025, it follows that the Committee accepts this proposal. Thus, it is planned to amend Article 100 of the Tax Code provided for in the framework of the New Tax Code.

2.Risk description: According to paragraphs 42, 43 of the Rules for Maintaining Personal Accounts, approved by Order of the Minister of Finance of the Republic of Kazakhstan No. 306 dated 27.02.2018, an employee of the accounting department manually enters registers of accruals (reductions) submitted by an official overseeing the fulfillment of tax obligations to pay indirect taxes.

Recommendations to eliminate risks: Consider the possibility of reflecting obligations based on taxpayer statements with automatic posting to personal accounts without manually entering registers of charges (reductions).

Form of completion: Exclusion of functions of manual entry of registers of charges (reductions).

According to the response of the Committee no. KGD-11-1-18/15412- MKK dated 17.04.2025 indicates that the Committee accepts this proposal. At the same time, by the end of 2024, the Action Plan to eliminate the causes and conditions conducive to the commission of corruption offenses identified by the results of an internal analysis of corruption risks in the Committee included the event "Exclusion of accruals (reductions) by manual transactions through automation of processes related to accruals (payments), including through integration with external and internal information systems."

3.Risk description: According to the Article 71 of the Tax Code, tax inspection by tax officials at their request or at the request of a taxpayer (tax agent) is carried out with the participation of witnesses.

Adult, capable citizens in the number of at least two people who are not interested in the outcome of the actions of an official of the tax bodies and a taxpayer (tax agent) may be involved as witnesses.

Officials of state bodies and employees, founders of the taxpayer (tax agent) in respect of whom the action is being carried out, are not allowed to participate as witnesses.

In order to eliminate corruption risks that arise during a tax survey, if it is impossible to involve witnesses, it is mandatory to attach photos and (or) videos proving the absence (presence) of the taxpayer at the place of location. The duty to select witnesses by officials may be corrupt in terms of violating the categories of persons involved (interested persons, government officials, taxpayer founders, etc.). 

Recommendations to eliminate risks: Thus, according to paragraph 3 of Article 70 of the Tax Code, based on the results of a tax survey, a tax survey report is drawn up, indicating among other things:

last name, first name and patronymic (if it is indicated in the identity document), the name and number of the identity document, and the address of the place of residence of the person involved.;

In order to eliminate corruption risks, amend paragraph 3 of Article 70 of the Tax Code and set out in the following wording: surname, first name, patronymic (if it is indicated in the identity document), name and number of the identity document, address of the place of residence of the person involved, or information confirming the presence or absence of the taxpayer at the time of the investigation. tax survey (photo and video documents).

Form of completion: Amendments to the Tax Code.

According to the response of the Committee no. SRD -20-1-16/15714- MCC dated 29.04.2025 indicates that the draft of the new Tax Code already provides for this addition. Thus, according to paragraph 4 of Article 175 of the draft new Tax Code, photographs and negatives, video recordings or other materials made during the commission of an action may be attached to the act of tax inspection. Additionally, we inform you that the draft of the new Tax Code is currently under consideration by the Mazhilis of the Parliament of the Republic of Kazakhstan.

6.Development and distribution of budgetary and financial resources в

During the internal analysis of corruption risks on the development and distribution of budgetary and financial resources, corruption risks were not identified in the activities of the Department.

7.Signing of contracts with individuals and legal entities

During the internal analysis of corruption risks on the issues of signing of contracts with individuals and legal entities, corruption risks were not identified in the activities of the Department.

8.development and operation of information systems

During the internal analysis of corruption risks on the issues of development and operation of information systems corruption risks were not identified in the activities of the Department.

9.Other issues arising from the organizational and administrative activities of the object of analysis (collection of taxes and other payments)

During the internal analysis of corruption risks on Other issues arising from the organizational and administrative activities of the object of analysis corruption risks were not identified in the activities of the Department..

Head of Internal Investigations
Department.                                                                  Т. Beisekenov

Annex  2
to the Model Regulations on
internal analysis of the risks of corruption

«Approve»
Head  of SRD of EKR
_________S.Bimagambetov
«30» may 2025.

Action plan

to address the causes and conditions facilitating the commission of corruption offences, identified by the results of internal analysis of corruption risks in the State Revenue Department of East-Kazakhstan region

 

Head of IID HRM of the SRD of EKR                                                                                                               T. Beisekenov

Source : https://www.gov.kz/memleket/entities/kgd-vko/press/news/details/1008195?lang=kk