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Assisting a business owner through

a complex IRD audit


Assisting a business owner through a complex IRD audit

The Challenge 
Faced with a complex IRD audit, a business owner with multiple active companies, approached Smart Tax Solutions Limited. The client already had a chartered accountant to manage their regular tax compliance. However, due to the scale and seriousness of IRD’s investigation, they realised that the audit required specialist expertise.

The stakes were high: discrepancies in financial reporting had triggered concerns from IRD, and the client now faced the potential for significant tax arrears, PAYE scrutiny, and penalties of up to 250%.

Our Advice
We began with an IRD risk review of the client’s financial records, covering four years of both business and personal bank statements. Our analysis confirmed discrepancies in reported sales across the companies, raising red flags for both GST and income tax obligations.

Understanding the gravity of the situation and the need to act swiftly, we advised the client to submit a voluntary disclosure to IRD. Our team managed the entire disclosure process - drafting and filing it on the client’s behalf, with full transparency.

Throughout the audit process, we acted as the client’s liaison with IRD - attending multiple meetings, managing expectations, and addressing complex queries, such as:
  • What IRD asks for during an audit?
  • How long does an IRD audit take?
  • What are the implications of a voluntary disclosure?
The Outcome
Our proactive and strategic intervention ensured IRD accepted the voluntary disclosure and agreed to waive shortfall penalties. This was a major win, given the severity of potential outcomes, including prosecution.

We worked closely with the client to establish robust internal processes and strengthen compliance practices across all entities, thereby minimising the risk of IRD investigations.

Key Takeaways
  • Proactive disclosure can significantly mitigate penalties.
  • In spite of an existing accountant, specialist support is essential during an IRD enquiry.
  • Ongoing compliance is not just about regular tax returns. It's about having the right systems in place to avoid IRD audit scrutiny.
Action Plan
An IRD enquiry can be daunting; but you don’t have to navigate it alone. Whether it’s a GST audit, PAYE audit, or preparing for an IRD audit, Smart Tax Solutions Limited is here to help with their expert and confidential IRD audit assistance, so you can move forward with clarity and confidence.

Get in touch today to learn how your trusted partner in tax compliance can support you.

Take Action Today


Contact Smart Tax Solutions Limited today to discuss your situation in confidence. Our experienced team is here to provide clear advice, practical solutions, and tailored support — helping you navigate tax challenges and move forward with confidence.