Inland Revenue's audit and compliance activity is at record levels, with an increase of more than $140m in tax compliance funding for Inland Revenue over the four years from May 2025.
As an approved Participating Advisor, Baker Tilly Staples Rodway Auckland can conduct independent tax system and process reviews that Inland Revenue formally recognises, giving businesses certainty of compliance ahead of an Inland Revenue review or audit. The reviews can then form the cornerstone of good tax governance policies, which provides comfort to stakeholders.
What is the Participating Advisor Programme?
It's a formal programme where approved tax advisors conduct structured, independent reviews of a business' tax systems, policies, procedures and controls for a specific tax type. The advisors provide the business with a detailed report of our findings and recommendations.
If the business is subject to Inland Revenue review or audit activity and Inland Revenue is provided with the Participating Advisor’s review report, it agrees to rely on the report findings and not separately test that tax type and matters within the scope of the review. A report will generally provide this protection for at least three years.
A Participating Advisor can also be engaged in response to an Inland Revenue audit or risk review that is already underway.
Baker Tilly Staples Rodway is an approved Participating Advisor for the tax types listed below, meaning our reviews are formally recognised by Inland Revenue, carrying the protections and benefits of the programme.
Reviews that our Inland Revenue-accredited advisors can undertake
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| PAYE / Payroll (Accredited): Payroll systems, PAYE deductions, allowances, schedular payments and employer obligations. |
| FBT (Accreditation in progress): Benefits review, valuation and return processes across all benefit categories. |
| Tax Governance (Accreditation in progress): Overall tax control framework – policies, board reporting, risk management and governance maturity. |
| GST (Accreditation in progress): Systems, return processes, input tax claims and controls across the full GST cycle. |
Which businesses are eligible?
- Those with an annual turnover of $30 million or more;
- or Fifty or more employees
Voluntary participation
Clients choose whether to share findings with Inland Revenue, but even unshared reviews provide useful governance assurance.
Two ways a review can be used
Proactive – Good tax governance. Get ahead of Inland Revenue scrutiny
- Conduct a review to demonstrate good tax governance practice.
- Identify and remedy any issues before they become a concern.
- Demonstrate a proactive governance mindset – a strong mitigating factor in any Inland Revenue penalty assessment.
- Valuable in M&A and vendor due diligence to evidence low tax risk.
- Gives boards and directors confidence their obligations are actively managed.
- Provides evidence for external auditors (if relevant) of effective tax risk management.
Reactive – IRD review underway. Respond with clarity and confidence
- Engage us once Inland Revenue has initiated a review or audit on a tax type.
- Scope and timeframe agreed with Inland Revenue, so our review satisfies their requirements.
- Our findings are presented to Inland Revenue and separate Inland Revenue testing not required.
- Demonstrates cooperation and a commitment to good tax governance.
- Can reduce the scope, duration and disruption of the Inland Revenue review
Our specialists manage the engagement, keeping the focus on a practical resolution.
Key outcomes from a Participating Advisor Programme review
- Early issue resolution: Voluntary disclosure before an audit removes tax shortfall penalties.
- Potential tax savings Reviews often identify savings alongside tax risks — both are reported.
- Governance confidence: Gives boards and directors assurance that tax obligations are actively managed.
Not sure which review is right for your business?
Contact our tax specialists for an obligation-free discussion regarding Inland Revenue focus areas and whether a Participating Advisor Review would be beneficial for your organisation.