Protect Yourself from Unexpected Tax Audit Costs with Audit Shield

Following the government injecting even more funds into IRD we are seeing an increase in IRD activity and audit claims. 

At Epplett & Co, we understand how stressful and expensive it can be to deal with a review or audit from Inland Revenue (IR). Even when your tax returns are filed correctly, you can still be selected for an audit at random. In fact, IR has significantly increased its use of data-matching and artificial intelligence to target previously unreviewed returns—meaning anyone, at any time, could be in the spotlight.

That's why we offer our clients the Audit Shield Master Policy, provided in partnership with Accountancy Insurance. This specialist tax audit insurance is a simple and cost-effective way to protect yourself or your business from the financial burden of unplanned professional fees arising from IR audit activity.

Why Consider Audit Insurance?

Audit activity is on the rise. Inland Revenue is conducting a growing number of audits, reviews, investigations, and enquiries across a wide range of tax areas. These include:

• Income Tax
• GST
• PAYE
• Fringe Benefits Tax
• Employer Returns
• Dividend Withholding Tax
• Record Keeping
• Non-Resident and Resident Withholding Tax
• Imputation Credit Accounts
• And more!

Being selected doesn’t necessarily mean you’ve done anything wrong, but responding appropriately to an IR audit often requires professional help—which comes at a cost.

What Is Audit Shield?

The Audit Shield Master Policy is an insurance offering that covers the professional fees we incur on your behalf in responding to official IR audit activity. This includes:

• Accounting fees
• Legal fees
• Bookkeeping and specialist consultant fees (e.g., tax lawyers)
• Interim and final representation costs

All are covered up to a prescribed limit and with no excess.

Key Benefits of Audit Shield

• ✅ Protection from unexpected costs
  Audit Shield covers the fees associated with representing you during audit activity, which can often be greater than your annual compliance fees.
• ✅ Retrospective cover
  The policy applies to previously lodged returns—even if the audit relates to past financial years.
• ✅ Tax-deductible premiums
  If you're in business or self-employed, the cost of your Audit Shield premium is usually fully deductible.
• ✅ Peace of mind
  You’ll be supported through what can otherwise be a stressful and time-consuming process.

Real-World Impact

According to recent data from Accountancy Insurance, Audit Shield saved New Zealand taxpayers over $1 million in professional fees in the 2023/24 year alone. The most common audit types covered included GST (53.33% of claims), income tax returns (30.86%), and employer obligations such as PAYE and FBT.

Is Audit Shield Right for You?

We offer Audit Shield to all our clients—salary and wage earners, the self-employed, and businesses with turnover under $100 million. Different coverage levels are available depending on your needs.

If you'd like to avoid unbudgeted expenses and gain assurance that you're protected, we highly recommend participating in our Audit Shield Master Policy.

Want to Know More?

If you’d like to discuss how Audit Shield can benefit you or your business, or if you have any questions about the policy, please get in touch with our team.

Stay protected. Stay prepared—with Epplett & Co and Audit Shield.