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