Review Of Case Law Of The Cassation Court For Administrative Cases

I. Resolution of the Cassation Court for Administrative Cases of the Republic of Kazakhstan No. 6003-25-00-4k/2283 dated 21 January 2026 

Challenging the Tax Authority’s Actions in Issuing an Order for a Tax Audit

LLP “ASYL enbek” (hereinafter – the “Claimant”) filed an administrative claim against the Tax Department  of Almaty region (hereinafter – the “Respondent” or the “Department”) seeking recognition as unlawful and cancellation of Order No. 192 dated 13 November 2024 on the appointment of an unscheduled thematic tax audit.

By the decision of the Specialized Interdistrict Administrative Court of Almaty Region dated 13 February 2025, the claim was satisfied and the Order was declared unlawful and annulled. By the appellate ruling dated 8 July 2025, the first-instance decision was upheld. By the Resolution of the Cassation Court dated 21 January 2026, the judicial acts of the lower courts were left unchanged and the cassation appeal of the Department was dismissed. 

Findings of the Cassation Court:

1. Absence of Legal Grounds for Initiating the Audit
   
   The Court established that, in violation of paragraph 3 of Article 145 of the Tax Code and paragraph 3 of Article 144 of the Entrepreneurial Code, the Order:
   • did not specify the concrete legal grounds for initiating the audit;
   • did not contain factual evidence of the Claimant’s failure to fulfill tax obligations;
   • did not include mandatory requisites, including the subject (scope) of the audit and the issues to be examined during the audit.
2. Failure to Conduct the Mandatory Hearing Procedure
   
   The Order appointing the audit constitutes a burdensome administrative act. Pursuant to Part 1 of Article 73 of the Administrative Procedure and Process Code (hereinafter – the ‘’APPC’), the administrative authority is required to conduct a hearing procedure prior to issuing such an act.

   The Department failed to conduct this procedure. The Department’s argument that a hearing had been conducted previously was rejected by the Court, as each order appointing an audit constitutes an independent administrative act and requires compliance with the hearing procedure before its issuance.

3. Violation of Principles of Administrative Procedure
   
   The Cassation Court established violations of the following principles enshrined in the APPC:
   • the principle of fairness;
   • the principle of comprehensive and objective examination of circumstances;
   • the obligation of the administrative authority to ensure equal opportunities for the parties to protect their rights.

   Under Part 4 of Article 6 of the APPC, violations of the principles of administrative procedure, depending on their nature and materiality, entail the recognition of the administrative act as unlawful.

   
   
   

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