Audit Shield

You may have noticed that the IRD has been featuring in the media quite a bit lately. Reported to have received additional funding, it has resulted in a sharp increase in audit activity and now, more than ever before, individuals and businesses are at risk of being selected for a random audit, enquiry, investigation or review.

What are tax and government audits and reviews?

Audits, enquiries, investigations and reviews are conducted by IRD and other government agencies to ensure business and tax payer compliance with various tax and legislative requirements including Income Tax, PAYE, GST, FBT, Record Keeping, Kiwisaver, Employer Returns and Computer Tax audits etc.

What are the costs to businesses and tax payers in the event of audit activity?

If your business or individual return is subjected to an audit, enquiry, investigation or review, you are responsible for the costs involved in providing the required information. Even the simplest enquiry can require hours of work. In multiple years or multiple entities, thousands of dollars in accounting and legal fees can be incurred. The cost of being properly represented in these matters can be quite considerable depending on the length of time involved.

How can I protect myself from the costs incurred in audits, enquiries, investigations and reviews?

We can offer you participation in our Audit Shield Master Policy which can provide you with comprehensive relief from these costs (fees). The Audit Shield Master Policy provides for the payment of the professional fees incurred as a result of you being selected for an audit, enquiry, investigation or review by IRD or another Government body. The Audit Shield Master Policy premium provides a fixed, cost effective solution to guard against these unbudgeted costs.

What costs are covered?

The service covers all professional fees up to a prescribed limit (with no excess) when responding to, or representing you in an audit, enquiry, investigation or review. These include not only our fees, but also legal fees, bookkeeping fees and specialist professional advisor fees (e.g. specialist accountants and lawyers etc).

If you are interested in learning more about Audit Shield please contact us. We will send you an information pack which will include an acceptance form/invite if you choose to proceed.