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Tax Talk: Large taxpayers - common tax issues identified by Inland Revenue
Time to read: 2 mins
As part of Inland Revenue’s risk framework for medium to large enterprises, certain significant enterprises are required to provide an annual Basic Compliance Package (BCP) to Inland Revenue. This BCP consists of financial statements, income tax reconciliations and group structure charts.
Inland Revenue have recently published details of some of the issues identified from the BCP process in the 2015 tax year. These issues were identified from a mix of voluntary disclosures following further information requests and audit letters and also from issues found during audits. These issues can apply to enterprises of all sizes. For your information, the top ten issues identified are set out in the table below.
| Area | Issues identified |
|---|---|
| Tax calculations and income tax returns |
|
| Fixed Assets |
|
| Fringe Benefit Tax (FBT) |
|
| Payroll Taxes (PAYE) |
|
| Goods & Services Tax (GST) |
|
| Transfer Pricing |
|
| Shareholder Continuity |
|
| Losses |
|
| Imputation Credit Accounts |
|
| Non-resident Withholding Tax (NRWT) |
|
We recommend that all clients have regular reviews of their policies and procedures relating to the completion of GST, PAYE, FBT, RWT and NRWT returns to ensure compliance with current tax law and to provide protection in the event of an Inland Revenue risk review and /or audit. To assist with this, we offer health checks in all tax types to ensure key tax risk areas of your business are managed. In many cases these health checks identify cash savings for our clients. If you have any concerns in the above areas or would just like find out what is involved in a review, contact your local Baker Tilly Staples Rodway adviser.
DISCLAIMER No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.