IRD Risk Reviews, Audits and Disputes are always stressful and can expensive and time consuming. Without an expert, risk review or audit can lead to massive tax bill and in some cases prosecution. It is therefore very important to deal with the risk review and audits straight away. However, this generally means providing large amounts of information to IRD within tight deadlines and responding to IRD queries in the correct and prescribed format.
IRD imposes penalties which can range from as little as 20% to as high as 150%. In addition to the shortfall penalties the taxpayer is also charged ‘Use of Money Interest’ (UOMI) and Late Payment Penalties (LPP), which will further increase the cost. Over and above the penalties, the taxpayer can be face Prosecution for evasion and can result in two years in jail.
The important issue is that it is not very clear for taxpayers and sometime for the ordinary tax agents to identify when an audit actually starts and even who is actually under audit. This is because most tax agents do not understand IRD’s process of Risk Review and Audit.
It is therefore very important to engage the right professionals to deal with IRD for risk review and audit.
How to deal with IRD Risk Review and Audit
Its best to get someone who understands IRD’s process to deal with IRD Risk Review and Audit. An Ex-IRD investigator is often the best person to understands the IRD process and to deal with the investigators. At The Hive, we uses an Ex-IRD Investigators to deal with the IRD Risk Review and Audit and have achieved excellent outcomes for clients under, which have saved hundreds of thousands of dollars in penalties and interest, and has successfully ruled prosecution in almost all instances.
Get in touch today, and let us help you in dealing with IRD.