You may be aware that the Inland Revenue Department (IRD) has increased their audit activity. This may increase the likelihood of you being selected for a random IRD audit.  A random audit (or review or Investigation) by the IRD will result in costs to you. Even if there are no adjustments to the return, there are still costs associated with the preparation of material and managing the response process.

For this reason we have taken out an Audit Shield Master Policy in our name with Accountancy Insurance. This Tax Audit Insurance policy covers the professional fees incurred (up to a prescribed limit) for any audits, reviews or investigations relating to the current and all previous years' lodged returns.  This includes GST and income tax audits.  The policy does not cover any fines or penalties which may be imposed by the IRD.

We consider Audit Shield to be a very effective way of planning for the professional fees that result from an audit, review or investigation, but it is entirely optional whether you participate or not.

If you have any queries about Audit Shield or Audit Insurance please give us a call or visit Accountancy Insurance’s website