Tax Audit Insurance

Tax Audits can be time consuming, stressful and a costly exercise but they are a fact of life if you run a business, own a rental property or have your own self managed superannuation fund.

Our philosophy includes helping you protect your assets so we offer our clients the opportunity to insure against the accounting costs you might incur in a tax audit. Below are some commonly asked questions regarding tax audit insurance.

What are random Tax and Government Audits?

The Australian Taxation Office (ATO) and other state and federal government agencies conduct audits, reviews and investigations to ensure business owners and taxpayers comply with all the various tax and legislative requirements including:

  • Income Tax
  • GST
  • Workers Compensation
  • SMSF
  • Employer Obligations
  • FBT
  • Land Tax
  • Payroll Tax
  • Record Keeping
  • Superannuation Guarantee

Services We Offer

  • Business start-up
  • Business Planning
  • Management reporting
  • Budget & Cashflow forecasting
  • Establishing Key Performance Indicators KPI's
  • Business Improvement Strategies
  • Accounting system advice & support
  • Business Coaching & mentoring
  • Business Structure Advice
  • Social Media & Marketing workshops
  • Buying & Selling business advice
  • Business Succession Planning

How likely am I to get a random audit, review or investigation?

The ATO, along with other federal and state agencies continue to announce significant increases in their audit activity. Now more than ever, Individuals, Businesses and Self Managed Superannuation Funds are at risk of being selected for a random audit or review. A lot of audit activity is computer driven by industry benchmarks and the ATO’s ‘Big Brother’ computer is also targeting specific industries including the cash economy.

What are the costs to businesses and taxpayers in the event of a random audit, review or investigation?

If your business or individual return is subjected to a random audit, review or investigation, you are responsible for the costs (professional fees) involved in providing the required information. Responding to even the simplest enquiry can involve hours of work and if your audit extends to multiple years or multiple entities you could incur thousands of dollars of accounting and legal fees. The cost of being properly represented in these matters can be quite considerable depending on the length of time involved.

How can I protect myself from the costs of random audits, reviews and investigations?

We can offer you an Audit Shield Service which can relieve you of these fees to a capped limit. The policy provides for the payment of the professional fees incurred as a result of you being selected for an audit, review or investigation by the ATO or other Government body.  The Audit Shield Service provides a fixed, cost effective solution to guard against these costs.

Client Testimonials

“I wish I had watched this financial presentation 10 years ago. Property Investment sounds a lot less daunting when you understand how it works. I thought I was a long way off getting an investment property, but I now understand I can use the equity in my home and I can afford the weekly net cost.”

 

Daniel Storey

“I was always busy in my business but my profitability was not a reflection of my time, effort and investment return.  After a business planning session with McHenry Partners, it was evident my systems were inefficient, our team members not productive enough and my time was being bogged down in less important areas of the business.

Over the last two years I committed to monthly consulting meetings with McHenry Partners. These meetings would identify the priorities of actions to work on my business to improve it. As a result, we have made significant improvements with better structures, systems and communication in our organisation and the team culture is now fantastic. I don’t have to worry about business cashflow anymore which gives me great peace of mind.

We now only have quarterly meetings instead of monthly, which keeps my General Manager and myself accountable to continue to improve the business. I would highly recommend McHenry Partners services.”

www.allgeneralsurveying.com

Richard Hockley
All General Surveying

What Costs are covered?

The service covers all professional fees up to a prescribed limit (with no excess) when responding to, or representing you in an audit, review or investigation. These include not only our fees, but also legal fees, bookkeeping fees and specialist professional advisor fees (e.g. quantity surveyors, valuers, and actuaries).

Who is covered?

All of our clients can take advantage of the Audit Shield Service. Different levels of cover are available for:

  • salary and wage earners;
  • businesses or business groups;
  • Self Managed Superannuation Funds;

What do I need to do to take up the Audit Shield Service?

Simply contact us and we will send you an information pack including an acceptance form.