Tax Audit Insurance
Protect yourself against ATO Audit Activity
Audit activity by the Australian Taxation Office (ATO) is at an all time high. A tax audit can be a stressful, time consuming and expensive experience for you. They are unfortunately almost par for the course now for anyone who owns a business, employs staff, has a self managed superannuation fund or even a simple rental property.
What is a tax audit?
The ATO and other state and federal agencies conduct audits, reviews and investigations to ensure business and taxpayer compliance in the following areas
- Income tax
- Employer obligations
- Superannuation guarantee
- Land Tax
- Payroll Tax
- Record keeping
- Self managed superannuation fund
How likely is this to happen?
As stated above – activity is at an all time high. The majority of audit activity is driven by the ATO’s use of computer benchmarks and data matching. They are also now focussing on areas such as the cash economy, high net wealth individuals and employee vs contractor arrangements.
What are the costs of an audit?
If your business, super fund or individual return is selected for an audit you are responsible for the costs involved in providing information they request – even if their audit finds that you have met all your obligations.
Audit activity is now more detailed than ever, and responding to what may seem a simple enquiry may take hours of work and if the audit extends to multiple years or entities, then you could incur thousands of dollars of unnecessary expense!
Business X fell behind in lodgement of 5 Business Activity Statements. ATO performs an employer obligations audit for the past 3 years. ATO Penalties – $660 late lodgement penalty. Professional fees – $4,000.
What is tax audit insurance?
Audit Protection Service provides for the payment of professional fees incurred as a result of you being selected for an audit, review or investigation by the ATO or other Government body.
The cost of being properly represented in these matters can be quite considerable depending on the length of time involved. Audit Protection Service provides a fixed, cost effective solution to guard against these unbudgeted costs.
What costs are covered?
The policy covers all professional fees up to the prescribed limit (with no excess) when responding to or representing you in a review, audit 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).
So, when you are covered – we will bill your insurer and not you!
Speak to us today about tax audit insurance – our rates are very reasonable!