IRD Update

IRD demanding additional Overseas Investment Income details

The IRD have recently added even more disclosure requirements into the 2023 Taxation Returns. We are now required to identify and advise to IRD of all overseas income in substantially more detail than before. This includes any overseas income via Investment Portfolios or Managed Funds, as well as any directly owned Overseas Investments (e.g. AMP, ANZ to name a couple). 

Here at Bennetts Proactive, we are completing these extra requirements and as a consequence, the time to build your tax return has increased and the data that will be requested will also be increasing.

Additional Audit / Review focus

As a by-product of these changes we are also expecting the IRD to be checking harder and more frequently and thus, asking more questions around this type of income.

It is critical to remember that as a New Zealand Tax Resident you are required to return your world-wide income into your tax return. The IRD are clearly searching for overseas investments and income, thus our questioning of you will increase to make sure that we are getting your tax solution correct the first time.

This could be a good time to reconsider Audit Shield Insurance, an assurance that should you receive a “please explain letter” from the IRD, you then don’t have to pay the fee for us to respond and ensure the IRD go away satisfied. Just a thought…