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.


 

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