Over recent years we have been offering Audit Shield to many of our clients. This service provides comprehensive tax audit insurance and covers professional fees (up to the prescribed limit) incurred as a result of audit activity instigated by the Inland Revenue Department (IRD).
IRD has the capacity to investigate anyone’s tax payments and they are increasing the number of audits, enquiries, investigations, and reviews they carry out on lodged returns.
Land transactions is one area where the department is committing huge resources. If you have recently acquired or sold a property, you may soon be contacted by IRD seeking further information on the transaction.
Responding to this audit activity can be time consuming and clients are often concerned with the potential costs associated with it. The benefits of Audit Shield include:
- Retrospective cover, including the cost of all eligible audits, enquiries, investigations and reviews of returns, irrespective of the year they were lodged.
- Coverage of specialist fees for tax experts, lawyers and others in providing opinions or a defence.
- Payment that is tax deductible if your client is in business or self-employed.
The types of claims that are covered include:
- Computer Tax Audits
- Dividend Withholding Tax
- Employer & PAYE Returns
- Fringe Benefits Tax
- Imputation Credit Account
- Income Tax
- Non-Resident Withholding Tax
- Resident Withholding Tax
- Plus, many other relevant matters.
If you would like to find out more about this cover, please give us a call.