16/01/2020

Are you at risk of a Tax Audit?

Business owners, landlords and investors are at risk of an Inland Revenue audit at any time.

If you’re unlucky enough to be selected for an audit, investigation or review of your filed returns then you may need our help to answer Inland Revenue’s questions and support you through the process. As a result, you could be caught off-guard with unforeseen accounting fees depending on the length of time involved.

Don’t panic though, like most things in life there’s an insurance for this and I recommend it for those of you at risk. It’s called Audit Shield. The policy covers our accounting fees and legal and specialist fees (up to a prescribed limit).

We’ve noticed an increase in Inland Revenue audit activity this year, including:

  • Requests for invoices for repairs and maintenance on rental properties
  • Verifying the information in the financial statement summary (IR10) in the income tax return
  • Querying portfolio management fees claimed on investment income
  • Verifying dividend withholding tax and imputation credits claimed on NZ dividend income
  • Verifying withholding tax claimed on overseas dividend income
  • Notifying clients of evidence of overseas earnings and asking them if they have anything to disclose (voluntary disclosure).

Should this happen to you, then the beauty of being part of the Audit Shield Master Policy is that they’ll pay your accounting fees for you.

The policy also provides retrospective cover, so previously filed returns are covered automatically.

To get yourself protected or to find out more, give me a call on 09-368 4712 or email ray@raymondkhouri.co.nz.

Got a question?

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