Consult your accountant if IRD calls

Polson Higgs is warning its clients to consult their accountant immediately if Inland Revenue makes contact directly about tax issues, offering to visit the taxpayer.

Tax partner Michael Turner said the direct contact could be ``particularly unsettling'' for clients who appointed an accountant to deal with IRD interactions.

``It appears IRD is on a PR offensive to promote the accounting income method [Aim] as the newest and best way to pay provisional tax.

``Most accountants, if they have been doing their job properly, will have already considered whether Aim is appropriate for the clients and where it is, ... contacted the client directly.''

In many instances, Aim, while on face value looking attractive, was not appropriate for clients or provided no benefits, he said.

The concern with IRD approaching clients directly was it had not considered all the client circumstances so was promoting something which might not be in the client's best interest.

This was in addition to the distraction the business would experience through direct IRD contact, Mr Turner said.


 

Add a Comment

 

 

drivesouth-pow-generic-1.png

Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter