Owens Tax Advisors regularly present and provide public comment on topical tax matters.

Our principal, Jeff Owens is also an accomplished and popular public speaker on tax matters. If you would like to arrange for Jeff to comment on or prepare and present a lively discussion on topical tax matters, please contact us.

How to handle IRD risk reviews and audits re undisclosed cash income

Owens Tax Advisors continues to deal with significant numbers of IRD reviews and audits of taxpayers who IRD allege haven’t returned all their cash income.

This is especially relevant if you or your clients are operating businesses in:

  • Hospitality
  • Trades
  • Otherwise having material cash transactions

IRD has multiple sources of income that lead them to review and audit high risk industries, especially those that handle a lot of cash.

In this article we summarise key issues and how to handle them.

Read on “How to handle IRD risk reviews and audits re undisclosed cash income”

IRD’s email policy

In late 2016 IRD published a reasonable if somewhat wordy policy for communicating with stakeholders by email. 

Some time later, as part of a general website refresh,  IRD removed the link to its policy, and refuses to load it until it has completed another review

To summarise:

  • A customer, agent or nominated person can give telephone permission to communicate by email
  • Subject lines should be meaningful
  • IRD will reply to an email without deleting the original ‘string’
  • Confidential material in an attachment can have an agreed password, but no zipping or ‘encryption’
  • Working spreadsheets or other documents can be emailed if they make it easier for a case to progress (which of course it always will)
  • IRD staff best practice recommends turning on ‘read receipts’ ,and where appropriate “out of office” messages (and we should extend the same courtesy)

I am not aware of any substantive change to the principles and the Commissioners office has confirmed they remain in force

Here is a link to IRD’s previously published policies in Owens Tax archives.

https://www.dropbox.com/sh/oyzzaozodzsy7af/AAB7m6OhrlFBzKihH23G_kfta?dl=0

 

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