Audit Protection Service in Newcastle, NSW

ATO and other tax audits can be expensive and are on the increase. To  help you, VBD Business, Taxation & Wealth Advisers of Charlestown, Newcastle, NSW offers Audit Protection Service that provides cover for tax audits wherein the bill will be on the insurer and not on you!

Here is everything you need to know about tax audit insurance:

What are random tax and government audits?

Audits, reviews and investigations are conducted by the ATO and other state and federal government agencies to ensure businesses' and tax payers' compliance with various tax and legislative requirements, including income, land and payroll tax, GST, worker's compensation, superannuation guarantee, compliance research and development grants.

 Example 1:
An import/export business received a comprehensive GST review.

Total accountancy fee: $4,637; cost to the business: $750

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 SMSFs are at risk of being elected for a random audit or review.

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

If your business or individual return is subjected to a random tax audit, review, or investigation, you are responsible for the costs involved in providing the required information. Even the simplest enquiry can require hours of work. In multiple years or multiple companies and trusts, thousands of dollars in accounting and legal fees can be incurred.

 Example 2:
A property developer is subjected to a client risk review.
Total accountancy fee: $17,550; cost to the developer: $975

What is the Audit Protection Service?

VBD Business, Tax & Wealth Advisers' Audit Protection Service is an audit insurance that provides for the payment of professional fees incurred as a result of you or your business being selected for an audit, review, or investigation by the ATO or another government body.

The cost of being properly represented in these matters can be quite considerable, depending on the length of time involved. The Audit Protection Service provides a fixed, cost-effective solution to guard against these unbudgeted costs.

What audits, reviews and investigations are covered by this tax audit insurance?

  • Income tax
  • GST and BAS
  • Superannuation guarantee
  • PAYG withholding
  • Fringe benefits tax
  • Payroll tax
  • Land tax
  • Stamp duty
  • Work cover
  • Self-managed superannuation funds
  • And many other lodged returns

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 an audit, review, or investigation.

These include not only our fees, but also legal fees, bookkeeping fees and specialist professional adviser fees, such as quantity surveyors, valuers, and actuaries.

 Example 3:
A motor dealer received a business activity statement (BAS) query that led to a comprehensive review.
Total accountancy fee: $13,991; cost to the motor dealer: $1,460

Who is covered?

All of our clients can take advantage of the Audit Protection Service.

Different levels of cover are available for:

  • Salary and wage earners
  • Businesses or business groups with turnover under $100 million
  • SMSFs

In most cases, individuals and family entities can be covered by the same policy that covers the business entity at no extra cost.

 Example 4:
An SMSF received a compliance audit.
Total accountancy fee: $6,058; cost to the super fund: $295

Is the cost deductible?

Yes, a tax deduction can be claimed.

 Example 5:
A salary and wage earner received an income audit.
Total accountancy fee: $6,908.50; cost to the individual: $90

Download the brochure to learn more about VBD Business, Tax & Wealth Advisers' tax audit insurance service, or make an online enquiry today.

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"I moved my accounting to VBD over 5 years ago. It was a positive step forward for both Adamstown Cleaning and me personally, and I wish I had done this years beforehand. With the help of VBD and the introduction of processes I am getting more from the business with less effort. There is always someone at VBD to help and everyone is very professional and prompt." John Ray, Director, Adamstown Cleaning.

“Denton Engineering is currently taking advantage of the Business Building Program service provided by VBD Business, Tax & Wealth Advisers. VBD and Denton Engineering regularly work together to implement best-practice strategies to ensure that customers receive the best quality outcomes 100% of the time. Denton Engineering believes that the key to a successful business is to focus on the value you provide to your customers above all else.” Michelle Denton, Denton Engineering.

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