Recognition as illegal and cancellation of notification of the results of the audit of the State Revenue Department
JSC "S" applied to the Department of State Revenue for the Aktobe region for recognition as illegal and cancellation of the notification dated January 28, 2016 No. 94/1 on the results of the audit. The application was partially satisfied by the decision of the Astana City Court dated August 1, 2016. The notification regarding the accrual of a bonus from oil sector organizations (hereinafter referred to as BKO) in the amount of 1,657,775 tenge and penalties in the amount of 378,450 tenge was found illegal. By the resolution of the specialized judicial board dated November 2, 2016, the decision was changed. In the satisfied part, it was canceled with the issuance of a new decision to reject the application. By canceling the notification, the court of first instance took as a basis the explanations of an independent expert from GKZ about the illegality of accruing the commercial discovery bonus, since standard work on geophysical research, laboratory tests of oil and gas samples from an already discovered field do not relate to exploration work.
Recognition as illegal and cancellation of notification of the results of the audit of the State Revenue Department
The court also stated in the decision that the tax authority had not proven the increase in reserves of the deposit as a result of additional exploration. The board considered the conclusions of the court of first instance erroneous, contradicting the factual circumstances of the case. The minutes of the GKZ meeting dated September 25, 2012 additionally approved an increase in dissolved gas in the amount of 30 million cubic meters. The Board, guided by subparagraph 1) paragraph 1 of Article 317, Articles 318 and 319 of the Tax Code, subparagraph 54) of Article 1, paragraph 1 of Article 83, Article 121 of the Law "On Subsoil and Subsoil Use", concluded that the approval of the GKZ to increase the initially established recoverable gas reserves by 30 million cubic meters, together with information on geophysical research Companies that correspond to the concept of additional exploration are the basis for additional BKO charges for the physical volume of increased reserves. The decrease in reserves of another type of mineral, recoverable oil, established by paragraph 2.11 of the 2012 GKZ Protocol does not negate the fact of an increase in gas reserves compared to the approved GKZ protocol of February 20, 2003. Therefore, the accrual by the BKO tax authority is legitimate.
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