Paul Martin Chartered Accountant Ltd :: Accounting, Taxation and Business Advisory :: Auckland, New Zealand
CLIENT PORTAL
Blog Layout

Are you prepared if the IRD audited you?

Paul Martin • Jul 25, 2019

Have you considered what would happen if you were subject to an audit by the Inland Revenue Department (IRD) ? You may not have ever have considered this, knowing you keep good records and work with us each year to prepare and file your annual tax return. However, even we don't know when the IRD might come sniffing and start asking questions. Often the outcome is that everything is in order, however, getting to this point comes at a cost.

That's why we offer clients the option to purchase Audit Shield Accountancy Insurance.

Fundamentally, Audit Shield covers you for professional fees that are incurred as a result of us responding to post lodgement queries from the IRD and other government authorities in New Zealand. 'Audit' is broadly defined under the policy to include any official enquiry, review, investigation or audit (including phone enquiries) instigated by the government authorities in relation to lodged returns. 

We fully understand that many people do not appreciate the value of accountancy insurance, seeing it as costly and unnecessary. However, we have had a number of clients who have been audited by the IRD recently and have claimed on their insurance. The IRD is currently quite active so anyone could be audited at any time.

It can happen to you!

In one case we have heard about from Audit Shield, the IRD initially undertook a Client Risk Review of a financial services business. Later, this expanded into a full audit in respect to Income Tax and GST compliance matters. The total accountancy fees of $17,850 were fully covered by Audit Shield.

As Chartered Accountants and business advisors , we can discuss with you anything you need to know about accountancy insurance. Just call us on (09) 576 4166 for more information, or book an appointment online.

We can help you have a peace of mind.

Audit Shield is offered by Accountancy Insurance - tax audit insurance specialists who assist over 1800 accounting firms throughout New Zealand and Australia. Established in 2003, Accountancy Insurance currently employ over 60 members of staff across both countries with each and every team member passionate about providing the market with a tax audit insurance product that is simple and effective - Audit Shield. The team at Accountancy Insurance has the depth of knowledge to ensure Audit Shield covers accounting firms and importantly, you, when it matters.

How the new Government and coalition agreements might affect owners of residential rental properties

By Paul Martin • 04 Dec, 2023
There were some key takeouts of interest to many of our clients from the recently signed coalition agreements between National, ACT and New Zealand First and the formation of the new Government. In particular there are a number of policies which will likely benefit landlord clients who own residential rentals. I have summarised some of these below. 1. Return of Interest deductibility for residential rental properties Interest deductibility for residential rental property owners will return. It will be phased back in over three tax years: • 2023/24 tax year: 60% of interest cost will be deductible. • 2024/25 tax year: 80% of interest cost will be deductible. • 2025/26 tax year: 100% of interest cost will be deductible. 2. Reduction in bright-line period National signalled in their pre-election campaign that the bright-line period for residential rental property sales would reduce from 10-years to 2-years. While the exact implementation of this policy is not yet known, it is good news on the horizon for residential property investors. 3. Reinstatement of 90-day no-cause termination notices The new government will reinstate 90-day no-cause tenancy termination notices. This will avoid many unnecessary disputes in the Tenancy Tribunal and gives landlords more confidence in letting to possibly “marginal tenants". Many landlords have avoided what they considered to be risky tenants because eviction for anti-social behaviour was so difficult. With this reinstatement, landlords might be more inclined to give a marginal tenant a chance because they know that if the tenant misbehaves, they won’t be stuck with them. If you would like more information on how these changes might affect your personal circumstances, please feel free to contact us to discuss further.

How does provisional tax work, especially in an economic downturn?

By Paul Martin • 18 Jul, 2023
If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like making progress payments on next year's income tax.

How to handle inflation as a sole trader

By Paul Martin • 18 Jul, 2023
Sole traders have had an especially difficult few years as inflation surges. We have got three tips to help lighten the load for your sole trader business. 
More Posts
Share by: