Tax man in your neighbourhood cont....
The tax man is here, there, he is everywhere, but more importantly he is in your neighbourhood, and just down the street.
In the 2013 budget they didn't say the tax man is coming to visit a place near you, but they may as well have ….
What they did say was:
"Budget 2013 provides a permanent $6.65 million increase in annual funding for Inland Revenue to pursue property investment tax compliance, which is expected to return about $45 million a year", Revenue Minister Peter Dunne says.
Peter Dunn also mentions "The Government has been very satisfied with the work that Inland Revenue has done in this area over the past few years. Since July 2010, about $110 million has been raised from additional property audit funding - that is a healthy return of $6.60 for each dollar invested."
What this says… is there is going to be more audit activity by the IRD, and that means you might expect a knock at the door.
Unfortunately, that knock will come with questions, requests for information, and the need to get your accountant involved. This is incredibly frustrating, but all is not lost, like most things you can buy insurance to assist … a product called Audit Shield.
In short what it does is for a small annually paid premium, give you the client a capped dollar figure for the fees cost to cover the audit.
Give it some thought, if it sounds like you, TvA can help, give us a call….