We have seen an increase in Inland Revenue activity over the last 12 months and we are expecting to see their activity to continue to increase, particularly queries and reviews in the following areas:
- The 39% personal tax rate on personal income over $180,000 from 1 April 2021 and changes being made as a result to minimise the impact of this.
- Trusts with taxable income are subject to new Inland Revenue powers to gather information regarding how they are operating.
- Claiming rental losses relating to short term accommodation (Air BnB, holiday homes etc) or commercial properties since the ring-fencing of residential rental losses was introduced from 1 April 2019.
- Property transactions, particularly those which could be subject to the bright-line rules for residential property sold within 5 years of acquisition from 29 March 2018.
- GST refunds and GST treatment on property transactions.
Audit Shield gives you the comfort that fees for the time spent in attending to these queries or reviews will be covered and these can sometimes be significant, even if your tax returns are correct.
Please feel free to contact us to discuss your need for audit shield with us or alternately pay the audit shield invoice recently received, especially if any of the above areas apply to your situation.