IRD Audit & Review Requests

We have seen an increase in the amount of audit and review activity from the Inland Revenue over the past 6-12 months.

In addition, the Coalition Government will increase funding for IRD tax audits to urgently expand the IRD tax audit capacity, minimise taxation losses due to insufficient IRD oversight, and to ensure greater integrity and fairness in our tax system, according to their coalition agreement.

When this happens the Inland Revenue requests detailed information about transactions, relationships, documentation and more. There are often multiple requests from Inland Revenue and often because of a significant pending refund, but not always.

This could mean that when you file a GST return that has a refund of due, the IRD may delay that refund until they are satisfied the return (and refund) reflects the true position by requesting more information.

This means that either yourself or your accountant will need to complete additional work to be able to satisfy Inland Revenues requests… and who pays for that… well…

Introducing Audit Shield!! If you find yourself or your entities either in a risk review or full audit situation, Audit Shield ensures that all the costs to comply with Inland Revenues requests are covered. Often this is a very inexpensive form of insurance, but you must have it in place before you have received a letter from Inland Revenue of a pending review or audit.

If you are interested in Audit Shield, please contact your Accountant to arrange a quote.