Tax Audit Insurance renewal notices have been sent ..

and some of you have already locked it in. Some of you maybe still undecided so we thought that we would outline what we are seeing.

With the IRD’s new system, the number of enquires from the IRD has certainly been increasing over the last 12 months particularly in the GST field. GST reviews are now more common straight off the bat as opposed to fielding a phone call first, having a discussion and the matter is finished. A letter seems to be automatically issued now by the IRD outlining information required and a date that it must be received by them.
Also the data collection powers have been widening under a majority government so the IRD are now receiving a lot more financial data from a lot more sources regularly rather than previously when they could only get information under an investigation. Then the “super computer” is processing and linking that information for the IRD to get a far better picture of what is actually happening.
So even if you are doing everything right, you may not be immune to being reviewed or audited.

By having tax audit insurance, it means in the event of an IRD review or audit and we look after it for you, the insurance company pays our fee.

So like any insurance, its about risk and what you want covered. So, in the event of an IRD review or audit and you would like us to manage the process for you, then we would recommend that you take up the tax audit insurance policy.