Tax Audit Insurance
Tax audits can be expensive and are on the increase. At VBD, our audit protection service provides cover for tax audits so we bill the insurer not you!Below, you'll find everything you need to know about tax audit insurance:
What are random tax and government audits?
Audits, reviews and investigations are conducted by the Australian Tax Office (ATO) and other state and federal government agencies to ensure business and tax payer compliance with various tax and legislative requirements such as Income, Land and Payroll Tax, GST, Workers ompensation, Superannuation Guarantee, Compliance research,Development Grants and many more.
|
Example 1:
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 Self Managed Superannuation Funds are at risk of being elected for a random audit or review.
What are the costs to busineses and tax payers 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 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:
Property developer subject to a client risk review. Total accountancy fee $17,550, cost to the developer $975 |
What is the audit protection service?
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 audits, reviews and investigations are covered?
- Income Tax
- GST & 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 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).
|
Example 3:
Motor dealer received a BAS query which led to a comprehensive review. Total accountancy fees cost $13,991, cost to the motor dealer $1460 |
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;
- Self managed superannuation funds;
In most cases, individuals and family entities can be covered by the same policy that covers the business entity – for no extra cost.
|
Example 4:
Self managed superannuation fund received a compliance audit. Total accountancy fee $6,058, cost to the super fund $295 |
Is the cost tax deductible?
Yes, a tax deduction can be claimed.
|
Example 5:
Salary and wage earner received an income audit. Total accountancy fee $6908.50, cost to the individual $90 |
Click here to download a brochure on VBD's Tax Audit Insurance service or click on the button below to make an online inquiry.
