Facing an IRD query or risk review can be daunting, especially when it involves undeclared income or past tax return errors. At NZ International Tax & Property Advisors, we specialize in helping individuals and businesses confidently navigate the IRD Voluntary Disclosure process. Our goal is to secure the best possible outcome for you, minimizing stress, penalties, and interest.
Navigating IRD Voluntary Disclosure with Experts
Why Consider Voluntary Disclosure?
Voluntary disclosure is a proactive step that can significantly benefit you if you’ve made a tax error or omitted income. By coming forward before IRD discovers the issue, you can often achieve:
- 100% Penalty Reductions: IRD is generally more lenient on penalties when you voluntarily disclose. We’ve successfully achieved 100% penalty remission in all of our past clients’ voluntary disclosure cases.
- Reduced Use of Money Interest: While interest may still apply, we can help mitigate its impact, sometimes utilizing tax pooling intermediaries to reduce your costs.
- Avoid Harsher Consequences: Proactive disclosure can prevent more severe penalties and legal action that could arise from an IRD audit.
- Peace of Mind: Resolving past tax issues brings clarity and certainty, allowing you to move forward without the shadow of undeclared liabilities.
Do You Need Voluntary Disclosure Help?
You might benefit from our expertise if you’re in situations like:
- You’ve received a risk review letter or audit notification from Inland Revenue.
- You’ve realized you have undeclared foreign income (e.g., from overseas investments/assets or businesses).
- There are errors in your past tax returns (e.g., incorrect expense claims, omitted revenue).
- You’re unsure of your tax residency status or how it impacts your New Zealand tax obligations.
You can download the voluntary disclosure form here. IRD also publishes their standard practice statement here.
Learn more about the power of a voluntary disclosure here
Our Approach to Voluntary Disclosure
We have extensive experience dealing directly with Inland Revenue on complex tax matters. Our process is designed to be thorough, efficient, and to put your best foot forward:
- Initial Consultation: We start with a no-obligation, free consultation. This is where we discuss your IRD query or letter, highlight potential tax issues and opportunities, and explain how we can add value.
- Information Gathering: We help you gather all necessary financial information and documentation to accurately assess your tax position.
- Determining Correct Tax Position: Leveraging our deep technical knowledge of New Zealand tax laws, we accurately determine the correct tax positions for your specific circumstances.
- Preparing the Voluntary Disclosure Letter: We meticulously draft and submit a comprehensive voluntary disclosure letter to IRD on your behalf, outlining the errors, the correct figures, and the reasons for the disclosure.
- Managing IRD Correspondence: We act as your liaison with IRD, responding to their queries and handling all communication, ensuring your case is presented effectively.
- Penalty & Interest Mitigation: We actively negotiate with IRD for the maximum possible penalty remission and explore options like tax pooling to minimize use of money interest exposure.
Case Study: Undeclared Foreign Investment Fund Income
Consider a Hong Kong citizen who migrated to New Zealand but, for over 20 years, had not declared foreign investment fund income from a significant Hong Kong share portfolio. When Inland Revenue issued a risk review letter, we stepped in.
We prepared and submitted a comprehensive voluntary disclosure letter, accurately reporting the omitted income. Through our expertise, we successfully requested penalty remission and managed all subsequent IRD queries. Additionally, we arranged for the tax purchase via a tax pooling intermediary to significantly reduce the use of money interest exposure for our client. This allowed the client to regularize their tax affairs with minimal financial impact and renewed peace of mind.
Ready to Discuss Your Situation?
Dealing with Inland Revenue letters is best left to experts. Don’t face it alone.
Book your free, no-obligation consultation today to discuss your specific IRD query or letter. Let us help you clarify your tax issues and achieve the best possible outcome.
