On declaring illegal and canceling the notification of tax arrears of individuals and the tax order on debt collection of an individual
No. 6001-24-00-6ap/2779 dated March 05, 2025
Plaintiff: G.B.
Respondent: Russian State Institution "State Revenue Administration" (hereinafter referred to as the Department)
The subject of the dispute: on recognition as illegal and cancellation of the notification of
tax arrears of individuals dated November 4, 2023 and the tax order on debt collection of an individual dated December 21, 2023
Review of the plaintiff's cassation complaint PLOT:
On November 4, 2023, the Office sent a notification through the taxpayer's office about G.B.'s tax debt in the amount of 40,300 tenge and a penalty of 14,284.02 tenge (property tax), indicating a payment deadline of 30 working days.
The tax authority has accrued arrears for the period 2020-2022. The notification was received on November 7, 2023.
Due to the failure to comply with the notification requirements within the prescribed period, on December 21, 2023, the Office issued a tax order to collect the amount of tax.
Taking into account the documents provided by the plaintiff confirming the alienation of one of the taxable objects (land plot No. 12) on June 4, 2021, the Management made an adjustment on January 4, 2024.
As a result, the amount of tax was reduced by 29,915.50 tenge, and the penalty was cancelled in accordance with paragraph 3 of Article 117 of the Tax Code.
After the plaintiff repaid the tax amount on January 5, 2024, the tax authority canceled the disputed tax order.
However, having disagreed with the administrative acts, G.B. applied for the recalculation of the tax to the Department, and then filed a complaint with the Department.
The complaint was dismissed, and the notification was not changed.
The claim is motivated by the fact that the tax authority must charge a tax at the rate of 0.39 tenge per square meter, as well as other procedural violations.
Judicial acts:
1st instance: the claim was denied.
Appeal: the decision of the court of first instance remains unchanged.
Cassation: Judicial acts are upheld.
Conclusions: local courts, considering the dispute on its merits and rejecting the claim, reasonably concluded that the plaintiff's land plots, the intended purpose of which has not been developed (there is no permit for the construction of a residential building), are subject to taxation at the rate of 6.75 tenge per square meter.
This rate is established by Article 505 of the Tax Code for lands of settlements not occupied by housing stock.
According to paragraphs 1, 2 and 4 of Article 497 of the Tax Code, all lands are considered for taxation purposes depending on their intended purpose and belonging to the appropriate categories.
The affiliation of lands to one or another category is established by the land legislation of the Republic of Kazakhstan. The lands of settlements are divided into two groups for tax purposes:
lands of localities, with the exception of lands occupied by housing stock, including buildings and structures attached to it;
lands occupied by the housing stock, including buildings and structures attached to it.
The land tax is calculated on the basis of:
identification documents: certificate of ownership, certificate of permanent land use, certificate of gratuitous temporary land use;
the data of the state quantitative and qualitative land accounting as of January 1 of each year, provided by the central authorized body for land management.
According to Article 505 of the Tax Code (as amended for 2020-2022), the basic tax rates on the lands of settlements for a city of regional significance are set per square meter as follows:
for lands not occupied by housing stock, including buildings and structures — 6.75 tenge;
for lands occupied by housing stock, including buildings and structures, — 0.39 tenge.
By virtue of Article 498 of the Tax Code, land tax payers are individuals who own land plots for permanent or temporary land use.
According to subparagraph 43-1) of Article 2 of the Law "On Housing Relations", the housing stock includes all dwellings in the territory of the Republic of Kazakhstan, regardless of the form of ownership.
Meanwhile, the parties to the case do not dispute that the plaintiff's land plots, which were owned by him both in the past and at the time of the consideration of the present case, do not contain any dwellings, including individual residential buildings.
Consequently, the conclusions of the local courts on the legality and validity of the contested administrative acts are correct, since there is no supporting information that the land plots owned or previously owned by the plaintiff belong to the category of land occupied by housing stock, including buildings and structures.
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