What is a risk review?
A risk review is initial review of your tax records. IRD usually does a risk review for a split phase, for example reviewing income tax returns for one financial year or a few GST returns to determine if there has been any mistakes made.
It is equivalent to an audit in terms of the information requested. The case officer will however require supporting documents for tax returns filed. Documents such as financials, receipts, invoices, and logbooks will be requisitioned.
What to do so that a risk review does not turn into an audit?
A risk review itself does not initiate notice of a pending tax audit. If correctly done and no major errors are observed, the risk review can be effectively accomplished without a need for an audit or further review.
Nonetheless if the case officer procure that there is a high probability that the returns are incorrect, the review will lead to a tax audit under section 141G(1) of the Tax Administration Act 1994.
SAA can facilitate clients in any state of review or audit. However, for the excellent result we recommend that you contact us when you get the first review letter. We work with our clients to gather information required by the Inland Revenue.
What if there are mistakes in my returns?
We realize that with the busy schedule small business holders lead, there may be some errors in the returns. Depends on the impact of the mistakes, there are options obtainable to you to rectify the mistakes.
For minor mistakes, we can disclosure with you and if necessary, will liaise with the IRD case officer for the best course of action. For major mistakes there are alternatives such as, notice of proposed adjustments or re-doing your returns or voluntary disclosure.
Each review/audit is nonidentical, it is best to consider with us about your accounts for specific advice on how it can be handled, the review or audit.