Article 38. On-site tax inspection 38.1. On-site tax inspection shall be conducted on the basis of decision by the tax authority.
The on-site tax inspection can be planned or not planned.
The tax authority shall inform the taxpayer in writing about the planned tax inspection not later than 15 days before the date of the inspection.
38.2. The notification sent to the taxpayer shall include the information on reasons and date of the inspection as well as rights and responsibilities of the taxpayer and tax authorities.
Planned on-site tax audit shall be conducted not more than one time in a year. On-site tax audit shall not continue for more than 30 days. In exceptional cases by the resolution of supervising tax authority the timing for tax inspection can be extended for the period of up to 90 days.
On the basis of justified decision of the higher tax authority the term of preparation of the report on results of on-site tax inspection may be extended for the period not more than 30 days in the following cases:
when receiving the documents from the foreign state, required for objective and full conducting of on-site tax inspection, including the reply to inquiry of tax authority; when inspecting the articles taken as samples, conducting of expertise in the course of on-site tax inspection or making the special conclusion with use of various spheres of knowledge;
when persons, sending the replies fail to forward the replies to inquiries in due time, made by tax authorities in connection with on-site tax inspection.
38.3. Not planned tax inspection shall be conducted in following cases:
38.3.1. If the last inspection of the taxpayer had indicated the situations of not maintenance of reporting documents by the taxpayer or the maintenance of such documents in inappropriate order, cases of evasion of 25 and more percents of taxable amounts; 38.3.1. If tax return documents, necessary for tax calculation and payment are not submitted in time or not submitted at all upon the warning of tax authority;
38.3.2. if incorrect information is found in the report made on the results of tax inspection.
38.3.3. When exceedingly paid amount of VAT, interest and financial sanction is assigned for the payment of other taxes, interests and financial sanctions or assigned as payments on future liabilities. In such case the out of turn tax inspection can be conducted only on taxable VAT operations of the taxpayer;
38.3.4. when application is submitted by the taxpayer to return exceedingly paid amounts of tax, interests and financial sanctions;
38.3.5. when tax authority obtained information from known source on indications of hiding (decreasing) of incomes or object of taxation by the taxpayer in the event that there exists information on tax violations by taxpayers registered for VAT purposes in accordance with Article 157.2;
38.3.6. when in accordance with criminal legislation there is a decision of the court or law-enforcement agency on implementation of tax inspection;
38.3.7. in case of failure to provide the documents, specified in article 42.4 of this Code, in due period stipulated by this article or provision of doubtful or distorted information;
38.3.8. in the event of application for liquidation, reorganization of the taxpayer legal entity or seizure of business operations of the natural person, operating without formation of legal entity;
38.3.9. if taxpayers who disagree with the results of the tax audit, require in writing to conduct an extraordinary on-site tax audit. In this case the extraordinary on-site tax audit can not be conducted by tax officials, who carried out previous audit.
38.4. The on-site tax inspection shall be conducted at taxpayer’s business day and business hours.
38.5. In the course of on-site tax inspection the inventory shall be performed according to justified decision of the respective executive power body in the following cases:
38.5.1. if in the course of last tax inspection the obvious non-keeping of accounting records by the taxpayer was found;
38.5.2. if in the course of last tax inspection, the obvious non-keeping of accounting records by the taxpayer required according to legislation was found and when arisen inaccuracies were not corrected after notification of the tax authority, and the report was not prepared according to stipulated regulations;
38.5.3. if in the course of on-site tax inspection of the taxpayer there were found non-marked goods, liable to marking by excise marks;
38.5.4. when inspecting the correctness of calculation and payment of the property tax of the taxpayer.
38.6. Regulations of inventory performance in the course of on-site inspection will be stipulated by the respective executive power body.
38.7. Based on a reasoned decision of the tax authority that made the decision on inspection, regular or special site tax audit shall be suspended (delayed) in the following cases, but not more than for 9 months:
38.7.1. if during a site tax inspection in respect of the taxpayer, the entity is not present at the address registered with the tax authorities or if it is impossible for whatever reason to identify the location or the seat of the entity - till determination of the place of stay of such entity;
38.7.2. in case of temporary disability of the taxpayer manager (his deputy), or an individual entrepreneur - till complete rehabilitation;
38.7.3. if invited expert or examination initiated by the tax authority - till submission of the inspection conclusion of specialist or expert;
38.7.4. on receipt from the foreign country of the documents necessary for a fair and complete site tax audit, including the response to the request of the tax authority - till receiving a response from a foreign country;
38.7.5. in the cases provided for in § 43.11 of this Code - before the entry into force of the Court's decision.
