Record Keeping Obligations 

 
Grange Associates Ltd - 27 September 2012

By law, you need to keep all your business records for a minimum of seven years from the end of the tax year they relate to.  Unless you receive approval from the IRD, the records must be in English and must be stored in New Zealand.

Try to keep personal and business records separate as much as is practical.  If your personal records include any business related transactions it would be a good idea to keep those for seven years too.

Once the seven years has passed from the end of the income tax year, the records relating to that year may be destroyed.

Audit

The IRD can extend the seven year period up to ten years where a taxpayer has been or is to be audited or investigated.

What to Keep

 - Final accounts including profit and loss statement and balance sheet

 - Cashbooks, journals and ledgers, either in hard copy or electronic form

 - Bank statements, cheque and deposit books, internet banking transaction details

 - If you are an employer, your wages book, again either in hard copy or electronic form

 - Business invoices and receipts

 - Cash register tapes, point of sale reports and data

 - Vehicle logbooks for vehicles used for business

 - Details of entertainment expenses for clients, suppliers and staff

 - Workings for GST returns

 - Stock on hand details

 - Debtors & creditors schedules

 - Interest and dividend statements

 - Fixed assets and depreciation schedules

 - Any other documentation relevant to the business activity

Non Filing Taxpayers

If you are a non filing taxpayer you only need to keep records for 12 months after the end of the income tax year.

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