Letter of the Main State Tax Service of Turkmenistan


Ref.¹ 2560/1
07.12.2001

To: Ashgabat and welayat
State tax services

Subject: about the order of financial sanctions calculation for understating
(concealment) of calculated taxes and other obligatory payments into the budget

The Main State Tax Service of Turkmenistan with the purpose of uniform understanding of rules of Decree of the President of Turkmenistan dated November 23, 2001 by ¹ 3506 "About the simplification of taxation and finance sanction application" in field of application to enterprises, organizations, institutions and citizens or understating (concealment) of calculated tax sums and other obligatory payments into the budget, informs the follow:
By Decree of the President of Turkmenistan (reference to the letter of Main State Tax Service of Turkmenistan dated November 30, 2001 by ¹2474/1) were made the modifications in Rules on the Main State Tax Service of Turkmenistan, authorized by Decree of the President of Turkmenistan dated January 6, 1992 by ¹ 250, in accordance with which, starting from October 1, 2001 to the Main State Tax Service of Turkmenistan, state tax services of welayats, etraps, towns and town etraps is given the right to apply to enterprises, organizations, institutions and citizens the financial sanctions for understating (concealment) of calculated tax sums or other obligatory payments into the budget, arisen owing to minimizing the tax basis by the taxpayer and other wrongful actions (inactivity) on tax calculation (other obligatory payments into the budget), - the penalty at a rate of 40% from understated (concealed) tax sum (other obligatory payments into the budget).
The above mentioned financial sanction is applied also in case of tax sum compensation (obligatory payment into the budget) from budget, arisen owing to wrongful actions of taxpayer.
With the purposes of penalty size calculation the sum of understated tax(obligatory payment into the budget) is defined with the account of unduly brought sums of such or other tax (other obligatory payment into the budget) for the periods since the date, determined for tax payment (obligatory payment into the budget) till the day of such infringement revealing the following formula is appealed:
ÈÑ=(S Ï õ ÊÄ1)/ÊÄ2
Where ÈÑ - is unduly brought sum of such or other tax (other obligatory payments into the budget), accepted for calculation of understated tax sum. For each calendar date this sum is accepted not higher than the sum before the charging tax;
Ï - payment sum;
ÊÄ1 - the quantity of days during which were made the overpayment;
ÊÄ2 - the quantity of days since the date of the tax obligation
occurrence, on which the charge about the day of such infringement is determined.
Example 1. In accordance with the submitted by taxpayer account for August, 2001 to the tax institution the additional cost tax is estimated in sum of 210 000 manat. By the documentary check, carried out by the tax institution on November 10, 2001 (date of infringement revealing-date of the check act drawing up), was established that the tax is estimated in a smaller size and should make 430 mln.manat, that is tax understating is 220 mln. manat.
The date of occurrence of the tax obligation on additional cost tax payment for August, 2001 is September 25. For the period since September 25 till November 10 (46 days) the taxpayer had been overpaid in the budget under this tax since September 28 till September 30 in the sum of 200 mln. manat, since October 10 till October 20 in the sum of 150 mln. manat and under the tax to profit from October 3 till October 9 in the sum of 100 mln. manat. By a settlement way we determine the sum of overpayment, which should be taken into account for definition of the financial sanctions, which will make 54,4 mln. manat (2 days õ 200 mln. manat + 10 days õ 150 mln. manat + 6 days õ 100 mln. manat) /46). Thus, the sum of the underestimated tax accepted for calculation of the penal sanctions will be equal to 165,6 mln. manat (220 mln. manat - 54,4 mln. manat), and sum of the penalty 66,3 mln. manat (165,6 õ 40 %).