Immediate Steps Following an IRD Query

Receiving official correspondence from the Inland Revenue Department (IRD) initiating a query can naturally be a source of concern, but responding with prompt and strategic action is critical from the outset. Your initial handling of the query significantly influences the subsequent interaction and potential audit process. The very first step upon opening the notice is the immediate acknowledgment of its receipt. This action is not merely a professional courtesy; it establishes a clear timeline and unequivocally demonstrates your attentiveness to the matter. Concurrently, undertake a thorough verification of every detail presented within the query letter. Accurately identifying the specific tax periods under review, the entities or transactions being scrutinized, and any particular discrepancies or areas of focus mentioned is essential. Gaining a precise understanding of the query’s full scope from day one prevents misdirection and ensures all subsequent efforts are appropriately targeted.

Following the confirmation of the query’s scope, it is paramount to immediately identify the stated deadline for your response or the submission of requested documents. This date serves as your critical anchor point, non-negotiable and absolute. Working back from this deadline is necessary to prioritize and initiate the document collection process without delay. Gain a crystal-clear understanding of exactly which records the IRD is requesting. These could encompass a broad range, from general ledger details and specific invoices to contracts, bank statements, or detailed reconciliation reports. Launching the search and retrieval of these materials promptly and with a clear organizational structure is fundamental to avoiding last-minute pressure and potential omissions that could complicate your official response.

To ensure the query is managed cohesively and efficiently, assigning a dedicated internal team lead is highly recommended. This individual, or a small, focused team, should be entrusted with overseeing all facets of the response effort. Their responsibilities typically include coordinating the comprehensive document collection process, serving as the primary liaison with the IRD (or collaborating closely with external advisors fulfilling this role), meticulously tracking progress against established deadlines, and ensuring absolute consistency and accuracy across all communications and submissions provided to the tax authorities. Establishing clear ownership and accountability early on is vital for preventing duplicated efforts, maintaining effective control over the entire process, and providing a central point of contact for managing this critical interaction with the tax department.