WC CFO TheStrategicCFO#44 Online NZ Final - Flipbook - Page 1
How to navigate an IRD audit with the best possible outcome
6. Audit insurance
An IRD audit can be very expensive,
especially if it takes a significant length
of time and you’re seeking assistance
from your expert tax advisor. For this
reason, you might consider taking out
audit insurance from the beginning so
that in the event of an audit, you won’t
find yourself in trouble financially.
Regardless of why you might be chosen
for an audit, it’s important to ensure
your records are up to date, you aren’t
providing any false or misleading
information, and you maintain a positive
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compliance history. This way, you’re
unlikely to owe any money after an
audit and less likely to be selected.
Avoiding tax obligations is a serious
offence that can result in severe
penalties. Any additional tax obligations
arising from an IRD audit is subject
to use of money interest (UOMI) and
shortfall penalties, which range from
anywhere between 20% to 150% of the
tax shortfall and are levied according to
the seriousness of the offence. The IRD
may, in extreme circumstances, consider
a criminal prosecution.
By seeking advice from a William Buck
tax specialist, you’re giving yourself
the best chance at successfully passing
the audit, or, where tax avoidance has
occurred, receiving the best possible
outcome. We will liaise directly with
the IRD on your behalf, explaining
to you along the way the matter
being investigated, the relevant facts,
outcomes and implications.
