Frequently asked questions.

What is an audit?

An audit is an investigation carried out by the IRD to ensure you have paid the correct amount of tax, on time, and you are complying with the tax laws.

How likely is an IRD investigation?

Because of the random nature of IRD investigations, it is impossible to predict your risk. IRD audits are part of the way to maintain the integrity of the tax system. The Self Assessment regime gives the Inland Revenue sweeping powers to investigate the tax affairs of all businesses and individuals. And whilst you never hear that the IRD has targets or budgets, you also never hear that the Police have to issue a certain number of traffic infringements.

Why would the IRD audit me, my books are squeaky clean?

Certainly not all Inland Revenue audits uncover discrepancies. However the process of audit does take time, and accountants traditionally invoice based on time. So even though you/your accountant has done everything to the letter, an IRD audit could still present you with an unplanned accountants bill.

How intrusive is an IRD investigation?

IRD officers are extremely thorough; an investigation is likely to involve examination of all business books and records, personal bank and building society statements and even a forensic examination as to whether your income can support your lifestyle. People who have been through an IRD investigation have sworn they’ll do anything to avoid the experience again.

Am I covered for any Tax and/or Penalties due as a result of an IRD Audit?

TIP will handle every aspect of any Inland Revenue Department Investigation with no further accountancy costs due, however any penalties or Tax due will be your responsibility.

I have more than one company can I use my TIP membership to protect myself and all my companies?

For each entity that has an IRD number you will need separate cover.

I’m currently being audited by the Inland Revenue, are you able to assist.

Yes, please contact us to discuss.

With the IRD reducing staff, will investigations still be a priority?

Despite reports of redundancies at IRD, thousands of taxpayers will have their tax affairs subjected to detailed scrutiny over the coming year. If you’re hoping it won’t be you, ask yourself, is it worth the risk?

Does joining TIP mean I have to change accountants?

Absolutely not. In the event that you are singled out by the IRD, we endeavour to work directly with your accountants. They will have access to a dedicated team of accountants and tax professionals who can give advice as necessary. All professional accountancy fees are covered by your membership fee, so there’s nothing more to pay. We will give your existing accountants a written undertaking that neither TIP, or any firm associated with TIP will act for you in any area outside of the audit for a period of 24 months unless they expressively agree.

Will the IRD think I’ve got something to hide?

Membership of TIP is entirely confidential and no one other than TIP is aware you are protected unless an investigation is initiated. TIP work in your best interest, handling an investigation in a professional manner to ensure a speedy and satisfactory resolution for our clients.

Is membership open to anyone?

Yes. Whether you use a Tax Professional, Chartered Accountant, Accountant or prepare your tax returns yourself, our services are available, subject to our terms and conditions.

We are a Chartered Accountancy in Public Practise, and wish to recommend your services to our clients?

Please contact us to discuss.

Am I covered for an audit covering the 2006 financial year if I join up now?

Yes as long as the IRD hasn’t commenced the audit process (see terms and conditions). Our cover is for contact initiated IRD during your membership period, regardless of which period/s they are auditing.





If you require any further information, please contact us here.

For Terms and Conditions, please click here.