Reduce costs on reassessed tax arising from tax audits and voluntary disclosures


The penalties resulting from tax audits and voluntary disclosures can result in one very unhappy client. Keep them a bit happier by eliminating IRD audit penalties and reducing interest costs.

Get some cover during tax audits

TMNZ has the largest pool of audit tax in New Zealand. The oldest tax in our pool goes as far back as 2007, putting us in the best position for tax audit protection. For accountants working with clients with historical tax audit liabilities, TMNZ has the resources and experience to provide the cover you need.

Reduce costs on missed or underpaid income tax

If your client owes additional tax due to a tax reassessment or a voluntary tax disclosure (i.e an increased amount of tax above the original assessment), we can help save them some money. By using TMNZ, your client can reduce interest costs by 30%, as well as save on tax audit penalties.

No worries as long as its within 60 days

When using TMNZ for reassessed tax arising from a tax audit or voluntary disclosure, there are a couple conditions. A tax audit can eliminate late penalties (excluding shortfall penalties), as long as the tax reassessment was issued in the last 60 days. It’s also important that the original tax return was filed.

Use it for ALL forms of tax

A TMNZ tax audit lets you take care of any type of tax. This includes PAYE, FBT, GST, NRWT, terminal tax and provisional tax. No matter what tax you owe, we will help make your tax reassessment stress-free for you and your clients. Contact us to find out how we can help for tax audits or voluntary disclosures.

Two ways to help your clients

1

Been through an IRD audit and found you have tax owing?

If you’ve been recently audited by IRD and have been notified that you have more tax owing, you can use Tax Audit to save on interest being charged for the reassessed tax amount.

  • We can help reduce costs during tax audits as long as you contact us within 60 days of when you’ve received your notice of reassessment from IRD.

2

Doing a voluntary disclosure for your clients?

If you’ve declared a voluntary disclosure on behalf of a client and have found you have more tax owing to IRD, you can use Tax Audit to save on interest being charged for the reassessed tax amount.

  • We can help reduce costs during voluntary disclosures as long as you contact us within 60 days of when you’ve received your notice of reassessment from IRD.

There’s a couple of important things we need to know before we get started. If you need help finding these, contact your accountant or get in touch with us directly.

01. The amount that’s been reassessed

This is the increased amount of tax owed as a result of the tax audit.

02. The date that the reassessment took place

Legislation provides 60 days to use pooling.

Learn more about tax pooling and reassessments

  • If the IRD selects you for a tax audit – or if you make a voluntary disclosure – you will receive a notice of tax reassessment.  An income tax reassessment will determine the amount of additional tax you may owe. In these situations, you can use TMNZ to help you pay your reassessed tax. Using an IRD approved intermediary like TMNZ can reduce your interest costs by up to 30%. You may also get more time to pay. New Zealand’s tax pooling rules allow for reassessments of different types of taxes, such as PAYE, FBT, GST, NRWT, terminal tax and provisional tax.

  • Tax reassessments don’t follow a specific time frame. How long it takes depends on what is being assessed. The size of your business and the standard of your records will also come into play. The IRD will let you know if an extended time frame is needed. Contact TMNZ today to find out how we can help you with your business tax reassessments.

  • An income tax audit is the assessment of your tax affairs carried out by the IRD. During a tax reassessment, the IRD will check that you have paid the correct amount of tax that you are liable for. Tax assessors have the right to audit your business without providing a reason.

  • A voluntary tax disclosure is when you choose to tell the IRD about mistakes with your tax affairs. Any person or business liable for paying tax can make a voluntary tax disclosure. Even if you have already received a tax audit notice, you can still make a voluntary tax disclosure. This can be done in the initial interview stage or during the inspection of your records.

  • Making a voluntary tax disclosure can save you on penalty charges. In many cases, penalties on any tax shortfall can be reduced by 75% or even 100%. You are better off making a voluntary disclosure than waiting for the IRD to find inconsistencies with your tax payments.

  • There are different types of tax audits, including personal tax audits and business tax audits. A personal tax audit assesses people who are liable for paying tax from personal income, while a business tax audit checks whether a business has met its tax obligations. A tax audit can be done on any small business or large corporation.

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