Audit shield & tax pooling

Audit shield & tax pooling

Audit Shield is an insurance we offer to protect against the cost of a tax audit by Inland Revenue, while tax pooling mitigates interest on tax penalties.

Our services include:

  • Tax Pooling

Tax Pooling allows our clients to obtain significantly better interest rates on tax payments, eliminate penalties in many cases, and provides access to funding tax payments if cash flow is tight. Our strategic alliance with Tax Management NZ means greater protection against tax interest and penalties. In particular, it gives greater tax certainly for businesses with unexpected variations in income or seasonal revenue differences. Tax pooling can also be used to satisfy tax due as the result of an audit adjustment, or if there is a voluntary disclosure to correct a tax position.

  • Audit Shield

Audit Shield is third party optional tax audit insurance which covers professional fees paid if you face an Inland Revenue audit, investigation or review. The cost of being properly represented can be considerable. Even a simple Inland Revenue enquiry can require hours of work. The Audit Shield Master Policy provides a fixed, cost effective solution to mitigate these unbudgeted costs.

What is covered?

All professional fees, up to a prescribed limit (with no excess) are covered when you engage us in audit activity matters. This includes:

  • Retrospective cover, all previously lodged returns are included.
  • Payment for your participation in tax deductible if you are in business or self-employed.

Is it right for you?

All Baker Tilly clients are invited to participate in our Audit Shield Master Policy. Different levels of cover are available for salary and wage earners and businesses with turnover under $100 million.

Services

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News

01 Dec 2022

Tax Talk | Recent Inland Revenue Updates

The changing interest rate environment has seen Inland Revenue needing to act, with both the FBT interest and Use Of Money Interest rates increasing.  In addition, IR has updated commentary on payments to private schools, charities and buildings, all of which have broad interest.

27 Sep 2022

The importance of paying tax as prescribed in NZ

Tax evasion is a criminal offence in New Zealand, and the charges carry a maximum sentence of five years’ imprisonment and a fine of up to $50,000.

19 Sep 2022

Tax Talk | Pros and cons in proposed Taxation Bill

The Minister of Revenue recently introduced the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2) into Parliament.

08 Sep 2022

Your business benefits from tax pooling in NZ

Taranaki Business Advisory Associate Kylie Cronin is a huge fan of tax pooling. Here, she explains the benefits.

25 Aug 2022

Which business expenses are tax deductible?

From the internet to repairing your motor vehicles, claiming deductible business expenses can add up at the end of the financial year. Are you up to date with what you’re entitled to? Baker Tilly Staples Rodway director Kylie Hollard talks about what’s covered.

18 Aug 2022

Tax considerations for the current crypto winter

Market conditions can change quickly in the world of crypto. Indeed, it doesn’t seem long ago that people were asking “how high can Bitcoin go?” and considering the extent that altcoins would “go along for the ride”.

30 Jun 2022

Tax Talk | Rates revamp for the 2022 income year

Inland Revenue has recently published various updated standard rates, and we outline these below:

10 Jun 2022

Trust rules keep focus on high-wealth Kiwis

Are you considered well-off or a high earner by average standards? Then you’ve probably felt the effects of government initiatives focused on ensuring the wealthy pay their “fair share”. Now it’s turned its gaze to trusts, with the implementation of new reporting requirements.

08 Jun 2022

Trusts will wear burden of new compliance costs

If you’re one of the many people who set up a family trust to protect your assets, by now you’ll likely be aware that the government has put a spotlight on trusts.

31 May 2022

Government looks inside use and wealth of trusts

Last month the Government brought in new annual reporting requirements for domestic trusts. It wants a better understanding of how trusts are used and what wealth they hold, so Inland Revenue has introduced two sets of reporting requirements.

18 May 2022

Budget 2022 - our analysis

Our tax experts summarise and give their opinion on the main points of the Labour Government’s 2022 Budget.

16 May 2022

The taxman cometh: Kiwis paying 10 days more taxes than last year

Our 2022 Tax Freedom Day calculations reveal the biggest shift in tax payments since 2010, with New Zealanders paying 10 more days’ worth of taxes than they did last year.

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