Tax Disputes
How can we help you with Tax Disputes & IRD Audits?
Receiving a risk review letter or a demand for payment from Inland Revenue (Te Tari Taake) can be one of the most stressful experiences for a business owner or individual. The worst thing you can do is ignore it. Whether you are facing a full audit, struggling with tax debt, or need clarity on a complex tax position, EasyLedger Solutions acts as your professional advocate. We manage the communication, protect your rights, and negotiate for the best possible outcome.
If the IRD notifies you of a "Risk Review" or audit, do not try to handle it alone. Anything you say can be used to expand the scope of the investigation. Our Tax Audit Support service provides you with a professional buffer. We review your records before the IRD sees them, manage all correspondence, and attend interviews on your behalf. If errors are found, we can guide you through the Voluntary Disclosure process, which can significantly reduce—or even eliminate—shortfall penalties.
Cash flow problems can happen to anyone, but unpaid tax debt accumulates interest and penalties rapidly. If you cannot pay your tax bill on time, we can help. Our Tax Debt Negotiation service involves communicating with the IRD to set up a realistic Instalment Arrangement that fits your budget. In cases of serious financial hardship, we can advocate for the remission of penalties or, in rare cases, a write-off of the debt. We stop the aggressive collection letters so you can focus on getting back on track.
Prevention is better than cure. If you are planning a complex transaction—like selling a business, restructuring assets, or a large property deal—and the tax law is unclear, you don't have to guess. We can apply for a Short Process Ruling on your behalf. This is a binding decision from the Inland Revenue that confirms exactly how the tax law applies to your specific situation before you make the deal, giving you absolute certainty and preventing future disputes.
Did you miss a provisional tax payment? Or did you earn more than expected and now face a "Use of Money Interest" (UOMI) bill? You don't always have to pay the IRD's high interest rates. We can access Tax Pooling Groups to "buy" tax that was paid by someone else on the correct date. This effectively backdates your payment, eliminating late payment penalties and significantly reducing your interest costs. It is a fully legal, IRD-approved way to manage cash flow flexibility.
Frequently Asked Questions about Tax Disputes
What triggers an IRD audit?
The IRD uses sophisticated data matching to find discrepancies. Common triggers include: consistently filing GST returns late, declaring business losses year after year while maintaining a high lifestyle, or having financial data that looks very different from the industry average (benchmarking). Sometimes, it is simply a random check.
What is a Voluntary Disclosure?
If you realize you have made a mistake in a past return (e.g., under-reported income), you can make a Voluntary Disclosure. If you tell the IRD about the error before they notify you of an audit, they will usually reduce the shortfall penalties significantly (often by 75% or even 100%).
Can I go to jail for unpaid tax?
Imprisonment is rare and usually reserved for cases of deliberate fraud or tax evasion (like suppressing cash sales or using PAYE money for personal spending). For standard business debts where you simply cannot pay, the IRD prefers to work with you to recover the money over time. Engaging an accountant early shows you are trying to comply, which helps your case.