The IRD wants to ensure the fairness and neutrality of the tax is maintained, and everyone pays their fair share of tax. Therefore, the purpose of this audit campaign is to target those traders who are not paying their share of tax. Normally, the IRD review the financial affairs and financial position of the traders and their close family members. They will investigate your bank statements, Trademe accounts, assets, debts and credit cards. IRD will interview you and you have to supply all information required by them. The audit process can become very long and stressful for the traders.
Example
We were recently approached by one of the trademe trader, his tax affairs were under audit and investigations. He was very nervous and stressful and did not know how to present financial information to the IRD. According to him the activity of selling items on trademe was his hobby.
He was selling unrequired items from his personal collections on trademe. Firstly, we determined whether his activity on Trademe was hobby or business. After carefully going through the facts, we concluded that “he was carrying out” a business activity on Trademe. We looked at the scale of his operation, regular pattern, dependency on the income, commitment in the activity.
We acted on his behalf and represented him in all dealing with the IRD. We collected all information and worked out the amount of tax he had to pay to the IRD. We submitted everything required by the IRD and satisfied the tax requirement. The audit ended and our client had to pay back a reasonable amount to the IRD. He was very happy with our help and the outcome.
Conclusion
Facing an IRD audit is a very stressful experience. Therefore, we are here to help. We will help you to pass through the IRD audit with least amount of stress and justified amount of tax to pay. We strongly advise you, do not deal with the IRD alone and seek professional help. For trader on Trademe, if the scale is big, you should register as a company and pay correct amount of tax to avoid the IRD audit.
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