On the ratification of the Loan Agreement (Tax Administration Reform Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / RLA / On the ratification of the Loan Agreement (Tax Administration Reform Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

The Law of the Republic of Kazakhstan dated January 24, 2011 No. 396-IV

To ratify the Loan Agreement (Tax Administration Reform Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on July 12, 2010.

President of the Republic of Kazakhstan

LOAN NUMBER: 7835-KZ

LOAN AGREEMENT (Tax Administration Reform Project) between THE REPUBLIC OF KAZAKHSTAN AND BY THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Date July 12, 2010

Loan number - 7835-KZ

LOAN AGREEMENT

Agreement dated July 12, 2010, between the REPUBLIC OF KAZAKHSTAN (the Borrower) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (The Bank). The Borrower and the Bank hereby agree on the following:

ARTICLE 1 - GENERAL CONDITIONS; DEFINITIONS

1.01. The General Terms and Conditions (defined in the Addendum to this Agreement) are an integral part of this Agreement. 1.02. Unless the context otherwise requires, the terms beginning with capital letters used in the Loan Agreement have the meanings assigned to them in the General Terms and Conditions or in the Addendum to this Agreement.

ARTICLE 2 - LOAN

2.01. The Bank agrees to provide the Borrower with an amount equal to seventeen million US dollars ($17,000,000), (Loan), for the term and conditions set forth or specified in this Agreement, to support the financing of the project described in Appendix 1 to this Agreement (Draft). 2.02. The Borrower has the right to withdraw the Loan funds in accordance with Section 4 of Appendix 2 to this Agreement. 2.03. The Borrower pays the Bank a commission for reserving loan funds equal to a quarter of one percent (0.25%) of the Loan amount. The Borrower pays the commission no later than 60 days after the effective date of this Agreement. 2.04. The Borrower pays remuneration during each Interest Period at a rate equal to the LIBOR rate for the Loan Currency plus a Floating Spread. Notwithstanding the above, if any part of the loan withdrawal remains unpaid on time and is not paid within thirty days, the amount of remuneration payable by the Borrower must be calculated in accordance with the provisions of Section 3.02 (d) of the General Terms and Conditions. 2.05. The payment dates are April 15th and October 15th each year. 2.06. The Borrower repays the principal amount of the Loan in accordance with the repayment schedule established in Appendix 3 to this Agreement.

ARTICLE 3 - THE DRAFT

3.01. The Borrower declares his commitment to the objectives of the Project and for this purpose implements the Project through the Tax Committee in accordance with the provisions of Article 5 of the General Terms and Conditions. 3.02. Without prejudice to the provisions of Section 3.01 of this Agreement, and unless otherwise agreed between the Bank and the Borrower, the Borrower shall ensure the implementation of the Project in accordance with Annex 2 to this Agreement.

ARTICLE 4 - ENTRY INTO FORCE; TERMINATION

4.01. This Agreement shall enter into force subject to the following conditions:: (a) The borrower's creation of an RCP with the resources and technical specifications satisfactory to the Bank. (b) The establishment by the borrower of a PIU composed of, with resources and terms of reference satisfactory to the Bank, which includes a financial management consultant and a procurement consultant. (c) Updating the accounting and financial management software that is satisfactory to the Bank in order to ensure that transactions are recorded and project reporting requirements are met. (d) Acceptance by the borrower of the Project Implementation Guidelines that are satisfactory to the Bank. (e) Acceptance by the borrower of a Project Implementation Plan that is satisfactory to the Bank. 4.02. The deadline for entry into force expires 180 (one hundred and eighty) days after the date of signing this Agreement.

ARTICLE 5 - REPRESENTATIVE OF THE BORROWER; ADDRESSES

5.01. The Borrower's representative is the Minister of Finance.

5.02. Borrower's Address: Ministry of Finance Pobedy Avenue, 11 Astana, 010000 Republic of Kazakhstan

Telex: Fax: 265126 (FILIN) 7-7172-717785

5.03. Bank's Address: International Bank for Reconstruction and Development 1818 N. Street, N.W. Washington, D.C. 20433 United States of America

The Telegraph: Telex: Fax: INTBAFRAD 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)

AGREED in Astana, Republic of Kazakhstan, on the same day and year as indicated above.

FOR THE REPUBLIC OF KAZAKHSTAN

Authorized representative

FOR THE INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT

Authorized representative

APPENDIX 1 Project Description

The objectives of the Project are: (i) to reform and strengthen the Borrower's tax administration to increase taxpayers' voluntary compliance with tax laws; (ii) to increase the effectiveness of anti-tax evasion measures; and (iii) to increase administrative efficiency and reduce the potential for corruption. The project consists of the following components:  Component 1: Institutional development Financing of goods, consulting services, training programs and operating expenses for the following activities: (a) detailed review of the organizational structure and development of the organizational structure of the central office of the Tax Committee, tax authorities in regions and districts; (b) reorganization and consolidation of NC offices in the field based on the functional rationalization of staff and systems(c) analysis and reform of the management structure of tax administration and the decision-making model; (d) a detailed review of personnel policy, legislation on public service, and the development of a planning system and strategy for the development of a reformed staff; (e) a review of the personnel management information system and its integration with the information technology system of the Tax Committee and the e-government gateway; (f) updating equipment and licenses for the human resources management information system; (g) developing strategies and training programs for tax administration staff; (h) preparation of a feasibility study for the training center for tax administration; (i) development of the technical infrastructure for the training center and the distance learning system; and (j) capacity building for tax administration through the organization of a study tour, management/personnel training and language courses.  Component 2: Operational development Financing of goods, consulting services, training programs and operational expenses by financing the following activities: (a) review and modernization of tax administration business processes; (b) development of an integrated database for taxpayers; (c) improvement of data/information exchange procedures with relevant government agencies; (d) development of a universal declaration methodology for tax administration; (f) development of a risk-based audit methodology; (f) development of analytical methods for collecting market information, identifying trends in non-compliance with tax legislation and assessing risk perception, as well as using information from ongoing audits for tax administration; (g) development of an information system for desk control; (h) development of an information exchange protocol with other agencies and procedures for using information from third parties and indirect sources. methods; (i) identification of models for the possible transfer of local tax authority to local authorities; (j) Improvement of compulsory tax collection and debt management; (k) design of a modern call center, knowledge database, web access to taxpayers' accounts and "single client" software; (l) review and reform of the departmental appeals system for tax administration; (m) creation of specialized tax courts; (n) revision of the VAT registration system in accordance with the protocol of harmonization within the Customs Union; (o) development of a VAT information exchange system for the Customs Union; (p) Creation of an automated VAT refund system; (r) review and reform of the excise tax procedure; (q) improvement of the taxation system for non-residents, including automated inquiries and economic monitoring; (s) capacity-building of tax administration through the organization of a study tour and training on the above activities, including training for judges of tax courts; (t) provision of software for business process re-engineering in tax administration; and (u) provision of specialized software and laptops for on-site inspections.  Component 3: IT infrastructure development Financing of goods, consulting services, training programs and operational expenses by financing the following activities: (a) capacity building in the organization and management of IT modernization; (b) development of an integrated tax information system; (c) database development; (d) concept, architecture and data center applications; (e) creation of central and regional data centers, including printout and distribution systems; (f) development of voice and data networks; (g) creation of a call center; (h) equipping video conferencing facilities; (i) developing a risk management system; and (j) developing subsystems for the IT infrastructure.  Component 4: Project Management Financing of goods, consulting services, training programs and operating expenses of the Tax Committee to support the coordination, implementation and management of the Project.

APPENDIX 2 Project Execution

Section 1. Implementation mechanisms

A. The Borrower implements the Project in accordance with the following institutional and other arrangements: 1. The RCP is fully responsible for Project supervision, strategic management, and overall coordination in accordance with the requirements, criteria, organizational arrangements, and operational procedures specified in the Project Implementation Guidelines. 2. The Borrower, through the Tax Committee, implements the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures specified in the Project Implementation Manual and Project Implementation Plan, and must not transfer, amend, cancel or abandon any provisions of the Project Implementation Manual or Project Implementation Plan without prior approval. By the bank. 3. Throughout the entire implementation of the Project, the Borrower must ensure that the composition, resources and terms of reference of the hydraulic fracturing and RCP are satisfactory to the Bank.  4. The Borrower ensures that sufficient co-financing funds are provided in its annual budget in order for the Tax Committee to fulfill all obligations under the contracts included in the approved annual Project procurement plan. 5. No later than June 30, 2011, the Borrower installs and maintains, during the implementation of the Project, an information technology platform in the Ministry of Finance, as well as appropriate equipment for an integrated tax management system and data management systems to ensure data exchange between the Tax Committee and other departments of the Ministry of Finance, satisfactory for the Bank.

B. Anti-corruption measures The Borrower will ensure the implementation of the Project in accordance with the provisions of the Bank's Anti-Corruption Guidelines.

Section 2. Monitoring reporting and Project evaluation

But. Project Reports 1. The Borrower monitors and evaluates the progress of the Project, and prepares Project Reports in accordance with the provisions of Section 5.08 of the General Terms and Conditions and based on indicators agreed with the Bank. Each Project Report must cover a period of one calendar quarter and must be submitted to the Bank no later than one month after the end of the period covered by this report. 2. No later than June 30, 2012, the Borrower, together with the Bank, conducts a mid-term review of the progress achieved during the implementation of the Project (hereinafter referred to as the "Mid-term Review"). The Mid-term review should, among other things, describe: (a) progress towards achieving Project objectives and (b) overall Project performance in comparison with Project performance indicators. 3. The Borrower provides the Bank, at least four (4) weeks before the Mid-Term Review, with a separate report describing the progress of each component of the Project and a summary report on the overall implementation of the Project.  B. Financial management, financial reporting and auditing 1. The Borrower maintains or ensures the maintenance of a financial management system in accordance with the provisions of Section 5.09 of the General Terms and Conditions. 2. Without prejudice to the provisions of Part A of this Section, the Borrower prepares and submits to the Bank, no later than 45 (forty-five) days after the end of each calendar quarter, interim unaudited financial reports on the Project for the quarter, in form and content satisfactory to the Bank. 3. The Borrower conducts an audit of its Financial Statements in accordance with the provisions of Section 5.09 (b) of the General Terms and Conditions. Each audit of Financial Statements should cover a period of one (1) financial year of the Borrower. The audited financial statements for each such period are submitted to the Bank no later than 6 (six) months after the end of each such period.

Section 3. Purchases

A. General provisions 1. Products. All goods required for the Project and financed from the Loan funds are purchased in accordance with the requirements contained or referenced in Section I of the Procurement Manual, as well as in accordance with the provisions of this Annex. 2. Consulting services. All consultant services required for the Project and financed from the Loan funds are purchased in accordance with the requirements contained or referenced in Sections 1 and 4 of the Guidelines for the Selection and Hiring of Consultants by Borrowers of the World Bank (Consultant Guidelines), as well as in accordance with the provisions of this Section. 3. Definitions. The terms beginning with capital letters used below in this Section to describe certain procurement methods or the Bank's review methods for certain contracts correspond to the definitions prescribed by it in the Procurement Manual or the Consultant Manual, as appropriate.  B. Specific methods of purchasing goods 1. International competitive bidding. Unless otherwise provided in paragraph 2 below, the purchase of goods is carried out under contracts concluded in accordance with the procedures of International Competitive Bidding. 2. Other methods of purchasing goods. The table below shows the procurement methods, except for International Competitive Bidding, that can be used in relation to goods. The procurement plan should contain the circumstances in which a particular method can be used.

Purchasing method

(a) Free trade procurement (b) Direct contracting

C. Specific methods of procurement of consultants' services 1. Selection based on quality and cost. Unless otherwise provided in paragraph 2 below, the procurement of consulting services is carried out within the framework of contracts awarded in accordance with the selection procedure based on quality and cost. 2. Other methods of purchasing consultants' services. The table below shows the procurement methods, other than Selection based on quality and cost, that can be used to purchase consultant services. The procurement plan should contain the circumstances in which a particular method can be used.

Purchasing method

(a) Quality-based selection

(b) Selection with a fixed budget

(d) Selection based on the qualifications of consultants

(e) Single-source purchases

(f) The procedures set out in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the selection of individual consultants

(g) Selection of individual consultants on a non-competitive basis

D. The Bank's review of procurement decisions The Procurement Plan specifies a list of contracts that are subject to Preliminary review by the Bank. All other contracts are subject to Subsequent review by the Bank.

Section 4. Withdrawal of Loan funds from the account

But. General provisions 1. The Borrower may withdraw the Loan funds in accordance with the provisions of Article II of the General Terms and Conditions, this Section, and those additional instructions that the Bank specifies in the notification to the Borrower (including the World Bank's "Guidelines for the Disbursement of Project Funds" dated May 2006, periodically reviewed by the Bank and applicable to this Agreement in accordance with such instructions), to finance Eligible expenses, according to the table in paragraph 2 below. 2. The table below identifies the categories of Eligible Expenses that can be financed from the Loan (the "Category"), the allocated Loan amounts for each Category, and the percentage of expenses to be financed as Eligible Expenses for each Category.

Category

Allocated Loan amount (in dollar terms)

Share of expenses to be financed (including taxes)

Consultant products and services, operational

$ 17,000,000

100 %

Total amount

$ 17,000,000

V. Withdrawal conditions; withdrawal period 1. Regardless of the provisions of Part A of this Section, funds should not be withdrawn.: (a) from the Loan account until the full amount of the loan reservation fee is paid to the Bank; or (b) for payments made prior to the date of this Agreement. 2. The closing date is December 31, 2014.

APPENDIX 3 Repayment schedule

1. The following table shows the Repayment Dates of the principal debt and the percentage of the total Loan amount to be repaid on each Repayment Date of the principal debt (Repayment Percentage). If the Loan funds are fully withdrawn on the first Repayment Date of the Principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined by the Bank by multiplying: (a) the Loan Amount withdrawn on the first Repayment Date of the principal debt, and (b) the Repayment Share for each The repayment date of the principal debt.

The date of payment of the principal debt

Repayment rate (in percentage terms)

Every April 15th and October 15th starting from April 15th, 2015 to October 15th, 2024

5 %

2. If the Loan funds are not fully withdrawn on the first Repayment Date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined as follows: (a) To the extent that any Loan funds have been withdrawn on the first Repayment Date of the Principal Debt, the Borrower must repay the Loan Amount withdrawn on that date in accordance with paragraph 1 of this Annex. (b) Any amounts withdrawn after the first Repayment Date of the principal debt must be repaid on each Repayment Date of the principal debt after the date of such withdrawal in the amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the initial amount of the Repayment Share indicated in the table in paragraph 1 of this Annex for that Repayment Date. The Initial Amount of the Repayment Portion of the Payment ("The Initial Amount of the Repayment Portion"), and the denominator of which is the sum of all remaining Initial Amounts of the Repayment Portion of Payments on or after the Repayment Date of the Principal debt. 3. (a) Loan amounts withdrawn within two calendar months prior to any Repayment Date of the Principal debt solely for the purpose of calculating the amounts of the principal debt payable on any Repayment Date of the principal debt will be considered withdrawn and outstanding on the second Repayment Date of the principal debt after the withdrawal date and will be repaid on each Repayment Date of the principal debt. debt, starting from the second Repayment Date of the principal debt after the withdrawal date. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank adopts a payment billing system in which invoices are issued on or after the relevant Principal Repayment Date, the provisions of this subparagraph will not apply to such withdrawals made after the adoption of such billing system.

addition

Section 1. Definitions 1. "Anti-Corruption Guidelines" means "Guidelines for the Prevention and Control of Fraud and Corruption in Projects Financed from IBRD Loans and MAP Loans and Grants" dated October 15, 2006. 2. "Category" means the category listed in the table Section 4 of Annex 2 to this Agreement. 3. "Consultant Guide" means the "Guidance on the Selection and Recruitment of Consultants by World Bank Borrowers", published by the Bank in May 2004 and revised in October 2006. 4. "General Terms and Conditions" - "General Terms and Conditions for Loans of the International Bank for Reconstruction and Development" dated July 1, 2005 (as amended until February 12, 2008), taking into account the changes presented in Section 2 of this Addendum. 5. "MF" means the Ministry of Finance of the Borrower or any of its legal successors or assigns. 6. "Operating expenses" means the operating expenses incurred by the Tax Committee in connection with the implementation, management and monitoring of the Project, including the dissemination of information on the Project, office rent and utilities, insurance, maintenance and repair of office and equipment, advertising, transportation costs, security and communications costs, banking costs and various other costs directly related to the implementation of the Project and incurred in accordance with periodic budgets acceptable to the Bank. 7. "Project Implementation Guidance" means guidance satisfactory to the Bank, which must be accepted by the Borrower in accordance with Section 4.01 (c) of this Agreement, which defines the operational and administrative responsibilities, procedures and rules for the implementation of the Project, including guidance on financial procedures consistent with the provisions of this Agreement, national legislation and instructions of the Borrower, which may to be changed and supplemented periodically with the prior written approval of the Bank. 8. "PRP" means a Project Implementation Plan that is satisfactory to the Bank and to be accepted by the Borrower in accordance with Section 4.01 (c) of this Agreement, indicating the action plan for the project. 9. "PIU" is a Project Implementation Group under the Department of Development and Modernization of the Tax Service of the Tax Committee, to be established in accordance with Section 4.01 (b) of this Agreement. 10. "Procurement Manual" means the "Procurement Manual for IBRD Loans and MAP Loans", published by the Bank in May 2004 and revised in October 2006. 11. "Procurement Plan" means the Borrower's procurement plan for the Project, dated December 1, 2009, referred to in paragraph 1.16 of the Procurement Manual and paragraph 1.24 of the Consultant Manual, which may be adjusted periodically in accordance with the provisions of these paragraphs. 12. "RCP" means the Project Steering Committee to be established by the Borrower in accordance with Section 4.01 (a) of this Agreement and responsible for Project oversight, strategic direction, and overall Project coordination, chaired by the Borrower's Minister of Finance or his designated representative, which should include representatives of key stakeholders from the private sector and relevant stakeholders. government agencies. 13. "Tax Committee" means the Tax Committee of the Ministry of Finance of the Borrower, established in accordance with the Regulation on the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan No. 201 dated April 24, 2008, or any of its legal successors or successors. 14. "Training" means a study tour, training courses, seminars, practical exercises and other training activities related to the Project that are not included in contracts for the supply of goods, work or services, including the cost of training materials, rental of premises and equipment, transportation costs, travel expenses of trainees and instructors, as well as payment for instructors.

Section 2. Amendments to the basic conditions

The following changes have been made to the General Terms and Conditions: 1. Paragraph (a) of Section 2.07 reads as follows: "Section 2.07. Advance payment for preparation for refinancing; Capitalization of the Loan opening fee and remuneration (a) If the Loan Agreement provides for the payment of an Advance from the Loan funds provided by the Bank or the Association ("Preparation Advance"), the Bank, on behalf of the Party to the Loan Agreement, must withdraw from the Loan account on or after the Effective Date such amount as is necessary for repayment the withdrawn and outstanding advance amount on the date of withdrawal of this amount from the Loan account, and pay all accrued and unpaid fees for the amount of the advance on that date, if applicable. The Bank will pay this amount, withdrawn in this way, in its favor or in favor of the Association, depending on the circumstances, and must cancel the outstanding amount of the advance." 2. Paragraph (1) of Section 7.02 reads as follows: "Section 7.02. Suspension by the Bank (1) Non-compliance with the requirements. The Bank or Association has announced that the Borrower (who is not a Member Country) or the Project implementation organization is ineligible to receive any financing from the Bank or Association or otherwise participate in the preparation or implementation of any project funded in whole or in part by the Bank or Association, as a result of the Bank or Association's finding that the Borrower or The Project Contractor participated in fraudulent, corrupt practices, coercion or collusion in connection with the use of funds from any financing provided by the Bank or the Association." 3. The following concepts and definitions were changed or deleted in the Addendum, as well as the following new concepts and definitions were introduced in alphabetical order with a corresponding change in the numbering of concepts: (b) The definition of the term "Conversion dates" should read as follows: "Conversion Date" means, in relation to the conversion, the execution date (as defined in the document) or any other such date requested by the Borrower and acceptable to the Bank, from which the conversion takes effect and for which the provisions of the Conversion Guidelines apply thereafter."

I hereby certify that this translation corresponds to the text of the Loan Agreement (Tax Administration Reform Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed in Astana on July 12, 2010.

Head of the Department of Personnel Coordination and Control of the Ministry of Finance of the Republic of Kazakhstan B. Akhmetzhanova

The RCPI's note. The following is the text of the Agreement in English.

President

Republic of Kazakhstan

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