September 21, 2026
Artificial intelligence (AI) seems to be everywhere these days. From helping businesses automate tasks and improve efficiencies to assisting with customer service, many of us are finding ways to use AI in our everyday work. But it’s not just businesses embracing this technology. The IRD are also using AI and advanced data analytics to help make its operations more efficient and effective.
IRD has advised that it uses AI and machine learning to analyse large volumes of data, identify potential compliance risks, and support decision-making. While people still make the final decisions, AI helps IRD review far more information than would have been possible in the past.
What does this mean for taxpayers? Simply put, it’s becoming easier for IRD to spot inconsistencies, missing information, or transactions that don’t quite add up. Information can be compared across multiple sources, and unusual patterns can be identified much more quickly than ever before.
That’s why it’s important to be diligent with the information and records you provide to us, as well as the records you keep within your own business. Accurate invoices, receipts, bank statements, and supporting documentation all help ensure your tax returns and financial statements are prepared correctly. They also make it much easier to respond if IRD ever asks questions about a transaction or tax position.
We have noticed an increase in IRD enquiries coming through, so this is your reminder to keep up those good record keeping habits and if you haven’t made use of Audit Sheild yet, it might be time to explore it further. Audit Shield is an optional protection service that helps cover the professional fees incurred if you are selected for an audit, review, investigation or enquiry by the IRD or another government agency. If you would like to find out more about Audit Shield and if it would be beneficial for you, get in touch with your usual dpa expert.
