The Challenge

Stepping into a long-running audit means untangling  years of financial data, prior advice, and historic decisions. With limited time and high financial risk, the stakes were significant.

Our immediate priority was time. We contacted the IRD to request an extension, but were told several had already been granted and none would be considered. Through careful negotiation and a clear plan of action, we successfully secured a six-week extension - giving us the critical breathing room needed to conduct a thorough review.



Our Advice 

Once we examined the accounts, the core issue surfaced quickly. Income tax returns prepared by the IRD was significantly overstated, because internal transfers between the accounts were recorded as income by the IRD.

Our team reprocessed seven years of financial statements to ensure accuracy and consistency. We prepared a voluntary disclosure outlining the discrepancies and corrections, demonstrating transparency and good faith. Throughout the process, we kept the directors informed at every stage, ensuring they understood both the risks and the strategy.



The Outcome

The results were significant. The original $5.2 million estimated liability was reduced to $1.2 million. We also negotiated to prevent prosecution and secured substantial reductions in shortfall penalties.

What once felt unmanageable became structured, evidence-based, and ultimately resolvable.

Key Takeaways

Whether it starts as an IRD risk review or progresses into a full IRD audit, transparency is critical. Disclose errors early, maintain clean coding practices, and conduct annual reviews of your financial systems. Proactive compliance is always less costly than reactive defence

Action Plan 

Tax issues don’t disappear with time; they grow. So, get in touch with experienced advisers who can help you with a clear, honest approach, and can even turn complex audits into opportunities to reset, rebuild, and move forward with confidence.