Incorrect accounting of fixed assets by groups can lead to incorrect calculation of depreciation charges and, consequently, additional accrual of CPI.
JSC "S", disputing the conclusions of the tax authority, indicated that the multiphase pump, measuring units, discharge lines, discharge pipelines, gas pipelines and well construction are subject to accounting in group II, and not in group IV. Fixed assets: a new base, an in-field road at the Zhanazhol field, a dining room, are subject to accounting for group IV, and not for group I. In substantiation of such arguments, the applicant cited the provisions of the State Classifier of the Republic of Kazakhstan Civil Code of the Republic of Kazakhstan 12-2009 "Classifier of Fixed assets" (hereinafter – KOF).
The Court found the applicant's arguments unfounded and stated the following. In accordance with paragraph 1 of Article 117 of the Tax Code, fixed assets are accounted for in groups formed in accordance with the classification established by the authorized state body for technical regulation and metrology, in the following order: Group I - buildings, structures, except for oil, gas wells and transmission devices; group II - machinery and equipment, except for oil and gas production machinery and equipment, as well as computers and information processing equipment; IV - fixed assets not included in other groups, including oil and gas wells, transmission devices, machinery and equipment for oil and gas production. It was established that the multiphase pump and measuring units are intended for use in the production process for more than one reporting period, therefore, the court considered the transfer of these assets from group II to group IV justified. The applicant's arguments that their use was extensive were declared untenable by the court, since they are used directly in oil and gas production.
After analyzing the Classifier of Fixed Assets (hereinafter referred to as the KOF), the court stated that the discharge lines and discharge pipelines are intended for the transfer (transportation) of liquid and gaseous substances, used under an oil production contract, respectively, the actions of the Department to assign fixed assets to group IV are legitimate. In accordance with the requirements of the tax legislation and the KOF, the court resolved the issue regarding the transfer by the tax authority of the above-mentioned fixed assets to group 1: a new base, an in-field road at the Zhanazhol deposit, and a canteen.
Attention!
Law and Law Law Law draws your attention to the fact that this document is basic and does not always meet the requirements of a particular situation. Our lawyers are ready to assist you in legal advice, drawing up any legal document suitable for your situation.
For more information, please contact a Lawyer / Attorney by phone: +7 (708) 971-78-58; +7 (700) 978 5755, +7 (700) 978 5085.
Attorney at Law Almaty Lawyer Legal Services Legal Advice Civil Criminal Administrative Cases Disputes Protection Arbitration Law Firm Kazakhstan Law Office Court Cases
