Now Live: Inland Revenue works with tax advisors to launch Participating Advisor framework

By Viola Trnski, Haidee Watkin, Troy Andrews & Jeanne Du Buisson
 

Inland Revenue has announced the launch of the Participating Advisor framework. This represents a pioneering step forwards in the management of tax governance and compliance in New Zealand.

The Participating Advisor initiative is a novel framework that overlays review products and can cover:

• tax governance policy and processes,
• data analytics in relation to GST-specific risks
• general GST systems and processes
• data analytics in relation to specific employee remuneration/benefits, and
• general remuneration systems and processes, including FBT.
  

Where a relevant review report is shared with Inland Revenue, they will accept the review outcomes and not undertake separate testing. As Inland Revenue’s recent spotlight on organisations’ tax governance and increased audit activity is set to continue through 2025, periodic tax type reviews will form an important part of tax governance, not only giving organisations some comfort that they are complying with relevant tax legislation but also providing Inland Revenue with comfort that an external party has reviewed that tax type.

The Participating Advisor initiative is available to taxpayers with a turnover of at least $30 million or 50 employees.

How do I initiate a review?

A Participating Advisor review can be initiated in two ways:

1. Undertaken as part of an organisation’s tax compliance activities and the review can be used to protect against any future Inland Revenue audit/review activities, or
2. Undertaken in order to pause or potentially replace Inland Revenue audit/review activities, if the scope and timeframes align with Inland Revenue’s activities.

Why Participating Advisor?

In contrast to an Inland Revenue investigation, a Participating Advisor review gives you control over timing and access to a team of experts that can identify and implement opportunities (rather than only risks). More generally, a Participating Advisor review can be implemented proactively to identify potential gaps, and ensure these are addressed and the business is in the best possible tax position going forward.

What can I expect from a Participating Advisor Review?

Specialist teams will work with you through questionnaires that have been tailored to both industry/client specific risks and align with Inland Revenue’s questioning. These interviews will take place around your finance teams busy schedules and in a flexible way to minimise disruption to your organisations. As a deliverable you will receive a traffic light report with identified risks and potential opportunities for your organisation. These reports are not automatically shared with Inland Revenue, unless the organisation is using it as evidence of a periodic review in a review or audit scenario.

Want to find out more?

The Participating Advisor framework officially went live on 3 April 2025. If you would like to know more, or alternatively discuss other ways you can strengthen your business’s tax governance, please get in touch with your usual Deloitte advisor.
 

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