Tax Audit Insurance provides cost-effective protection against the substantial costs that may be incurred should the ATO or other government revenue authorities conduct an audit, inquiry, investigation, review or examination of lodged returns or financial compliance obligations.
Official reviews or audits of lodged tax returns, or financial compliance obligations can sometimes be unavoidable and can occur without warning. When an audit hits, it is rarely a reflection of the work put into preparing the return by the accountant but is more often due to a specific crackdown by the Australian Taxation Office (ATO) or other government revenue authorities.
Introducing Audit Shield to offer you protection
Audit Shield is renowned in the accountancy industry for providing comprehensive Tax Audit Insurance protection to individuals and businesses. In fact, Audit Shield currently pays more than $1 million per month in claims to cover the professional fees associated with audit activity. This is evidence that audit activity is prevalent and Audit Shield is an effective mechanism in alleviating the financial effects.
The kind of audits and reviews typically covered by an Audit Shield policy include:
- BAS/GST Compliance
- Income, Land and Payroll Tax
- Record Keeping
- Self-Managed Superannuation Funds
- Superannuation Guarantee and Compliance
- Workers Compensation / WorkCover
- Most queries of any lodged return where the individual or business is compelled to respond or act
Cover for payment of professional fees
Audit Shield provides for the payment of professional fees incurred by individuals or businesses when audits, inquiries, investigations, reviews or examinations (audit activity) of lodged returns or financial compliance obligations are instigated by the Australian Taxation Office (ATO) and other government revenue authorities.
Audit Shield is provided by Accountancy Insurance (AI) and covers you for the costs incurred from a basic phone inquiry to a complete audit (when there is a compulsion to respond).
In summary, the benefits of Audit Shield include no unplanned fees for your business, coverage for the group and not just the main entity (subject to 25% ownership group rules), as well as coverage for current and previous years’ lodged returns, and a comprehensive policy structure.
Please watch out for the reminders we will be sending to clients over the next few weeks for you to choose to participate in our 2023-2024 service or contact your trusted advisor to find out if this could benefit you and your tax obligations.