TAX AUDITS- WHAT IS INLAND REVENUE DEPARTMENT FINDING?

IRD recently announced the major tax discrepancies identified by tax investigations.

The results represent a good indicator for you  of common errors made by taxpayers, which may assist with checks that can be made to minimise the risk of you falling into the same trap as those taxpayers who have suffered the pain of getting it wrong and being caught by IRD.      The major discrepancies are:

·         Losses ineligible to be carried forward.

·         Capital expenditure claimed in error.

·         Taxable income treated as a capital receipt

·         Failure to deduct or account for Non Resident Withholding Tax

·         Group loss offsets

·         Non-compliance of the accruals regime

·         Reserves disallowed

·         GST- time of supply

·         Losses on sales of assets claimed in error

·         FBT on vehicles

·         Superrannuation

·         Failure to deduct PAYE/ Withholding Tax