What are random Tax and Government Audits?
Audits, reviews and investigations conducted by the Australian Taxation Office (ATO) and other state and federal government agencies have increased to ensure business and taxpayer compliance with various tax and legislative requirements such as Income, land and Payroll Tax, GST, Workers Compensation, Superannuation Guarantee and Compliance Research and Development Grants.
How likely is it to get a random audit, review or investigation?
The ATO along with other Government departments are becoming more vigilant and continue to increase the number of audits they conduct. Now, more than ever, individuals, businesses and self managed superannuation funds are at risk of being selected for a random audit or review.
What is Audit Insurance?
Audit insurance 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 insurance provides a fixed, cost effective solution to safeguard against these un-budgeted and usually unexpected costs.
What audits, reviews and investigations are covered?
- Income Tax
- GST & BAS
- Superannuation Guarantee
- PAYG Withholding
- Fringe Benefit Tax
- Payroll Tax
- Land Tax
- Stamp Duty
- Work Cover
- Self Managed Superannuation Funds
- and many other lodged returns
What are the costs in the event of an audit, review or investigation?
If your business or individual return is subject 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.
What costs are covered?
The service covers 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).
Who is covered?
While there is no obligation to take this audit protection cover out, all of our clients can take advantage of audit insurance. 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.
Is it tax deductible? Yes, a tax deduction can be claimed.
What is not included? The following are not included by the audit insurance:
- Audit, reviews or investigations where notification was given prior to the inception of cover or your confirmation of participation
- Punitive costs such as penalty tax, costs, interests or any fines
- If the ATO auditor imposes final culpability penalties of 75% or more
- Failure to produce documentation or furnish information to the Taxation Office or Government agency
- Costs for work incurred which should have been done prior to the audit, review or investigation taking place
- Mass Marketing Schemes without a product ruling
What do I need to do to take up audit protection?
Contact us on(07) 5598 3800 to discuss any details as they may relate to you and to find out more about the right cover for you.