The tax office considered that the price of the goods had been understated.
The problem was that the contract itself did not specify either the price or the characteristics of the goods, including the mark and model.
The client purchased everything through an agent and does not even know in which factory the goods were manufactured.
How can I prove the real price if it is not even in the contract?
I decided to look for the factory and get their price-list.
And then the real quest begins:
Chinese websites are full of hieroglyphics, no translation in English.
Phones with a robot are only in Chinese.
No information, because the client bought through an agent and did not know where the goods were made.
Eventually, with the help of an intermediary, it was possible to collect information. The client’s story ended successfully, the tax authorities responded in time and the client was not obliged to pay 5 000 000 tenge.
Conclusion from this story:
- Write the price and characteristics of the goods in the contract. Without this you have no chance to prove the real value.
- Know the manufacturer. Even if you work through an agent, the contacts of the factory should be fixed.
- Tax office may not immediately make a claim, but after several years within the statute of limitations. And when that happens, it can be almost impossible to find evidence. In our client’s case, the only clue was a bag with a QR code, which he threw in the garage.