You have probably read that the Inland Revenue is currently spending $1.5 billion upgrading its systems, enabling them to increase their audit activity. We have started to receive an increased number of queries from the Inland Revenue in recent months around client activities. 

Unfortunately, the instigation of a random Audit, Review or Investigation by the Inland Revenue, or indeed any Government Authority, will likely result in costs to you or your business.  Even if there are no adjustments to returns, there would still be costs associated with the preparation of material for the Inland Revenue, or the authority involved, and managing the response process.  A typical starting point is around $1,000.

For this reason we have taken out Audit Shield Master Policy in our name. This Tax Audit Insurance policy, underwritten by Vero Liability Insurance Ltd, covers the professional fees incurred by our participating clients (up to a prescribed limit) for any Audits, Reviews or Investigations relating to both the current and all previous years' lodged returns.

This insurance cover does not automatically apply to you, unless you voluntarily decide to undertake coverage for you and your business.

We consider Audit Shield to be a very effective way of planning for the professional fees for which you would be liable in the event of an Audit, Review or Investigation. All clients should receive an invitation to undertaken coverage. 

Should you wish to participate, please complete the acceptance form (which you will receive shortly via email) and return it to us with your payment.  We receive the premium payment from you as an agent of Accountancy Insurance and your payment also includes a small fee payable to us to cover administrative costs for operating this service.

Please note that there is no compulsion to respond and no compulsion to join.  However to allow us to serve you better, please sign and return the decline page in the event that you do not wish to participate and do not wish to receive further information around the insurance in the future.

If you have any queries with respect to this insurance, please do not hesitate to contact us (04) 970-1182 or admin@aafl.nz

Kind regards

Ben & the All Accounted For Team