Can You Afford An Audit
The Government has recently pledged more money to allow the IRD to increase its audit activity. This poses an increased risk of being selected for random audits.
The instigation of a random audit or investigation by the IRD, or any Government Authority, results in costs. Even if there are no adjustments to the return, there are still costs associated in the preparation of material for the IRD, or the authority involved, and management of the response process.
The threat of increased IRD audits occurring has led to Gilligan Sheppard taking out Audit Shield. Audit Shield is underwritten by Vero Insurance New Zealand Limited and facilitated through Accountancy Insurance (an Underwriting Agency). We offer this to our clients via a master policy in our name.
The Audit Shield Master policy on offer covers:
• the professional costs associated (up to a prescribed limit) with any audits, reviews or investigations relating to the current year’s returns
• the professional costs associated (up to a prescribed limit) with all previous years, so long as the notice of audit is first received from the IRD or government authority after the participation date specified in the policy
The types of Audits, Reviews and Investigations covered by Audit Shield are in relation to:
• Income Tax
• GST
• Recordkeeping
• Fringe Benefit Tax
• Employer Returns
• Gift Duty
• PAYE
• Computer Tax Audits
If you would like to have the benefit of the insurance, on payment to Accountancy Insurance, and are an existing client, Gilligan Sheppard can add your name to the Audit Shield Master Policy. In the event that you are subsequently subject to an Audit, Review or Investigation after the participation date, we will then seek to claim our fee from the insurance company.
Your participation in the Audit Shield Master Policy will commence on the next business day after payment is received by Accountancy Insurance, and expires on 30 November 2012, which is the common expiry date of the policy. Our intention is to offer this insurance on an annual basis. Payment is tax deductible if you are in business or self employed.
For more information on IRD Tax Audits, visit http://www.ird.govt.nz/how-to/audits/
For more information on the Gilligan Sheppard Audit Shield Insurance, contact your Gilligan Sheppard Advisor today or visit the website - www.auditshield.co.nz
Quick Facts (pull out box)
What: Audit Shield Master Policy
Why: IRD are increasing audit activity- this is Insurance for the professional costs associated with an IRD Tax Audit
How: Gilligan Sheppard is offering insurance through their Audit Shield Master Policy
Audit Shield is underwritten by Vero Insurance New Zealand Limited
Audit Shield is facilitated through Accountancy Insurance (an Underwriting Agency)
When: Your participation can commence on the next business day after payment is received by Accountancy Insurance
Disclosure of interest: Accountancy Insurance New Zealand Limited Partnership is a client of Gilligan Sheppard Limited.
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