Tax Audit Insurance
Tax Audit Insurance provides cost effective protection and peace of mind against professional fees incurred should the ATO or other Australian government agency conduct a random review, investigation or tax audit.
The cover is provided through Accountancy Insurance, who are partners with over 2,000 accounting firms nationwide, and are acknowledged as continually setting the benchmark in Tax Audit Insurance. The cover is underwritten by Vero Insurance. With 180 years’ heritage and the size, strength and scale of the Suncorp Group behind it, Vero is the preferred name in Australian general insurance.
What Types of Events Are Covered?
The following official enquiries, reviews, investigations and audits are covered by Audit Shield:
- Capital Gains Tax
- Employer Obligations – Superannuation Guarantee / PAYG
- Fringe Benefits Tax
- Income Tax, GST and BAS
- Payroll Tax, Land Tax and Stamp Duty
- R&D Tax Incentive (ATO only)
- Record Keeping
- Self Managed Superannuation Funds (SMSFs) (cover available separately)
- WorkCover/Workers Compensation.
What professional fees are covered in the event of a claim?
The cover extends to professional fees in 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, actuaries, etc).
How much cover can I receive?
As a guide, individuals and businesses with a turnover of less than $1m would enjoy cover of $10,000. Businesses turning over between $1m and $10m would enjoy cover of $20,000.
How Much Does Cover Cost?
The cost varies depending on whether you are an individual , self-managed super fund or a business.
To give you a sense as to costs, the premium is $115 per year for an individual, and $480 per year for a business with a turnover of between $500,000 and $1 million.
The premium is fully tax deductible.
In the case of business cover, associated individuals and family entities can be covered by the same policy – for no extra cost.
WHAT IS NOT INCLUDED?
The main exclusions from the policy are:
- Any audit, enquiry, investigation or review arising from any verbal or written communication of impending audit activity given to you or us (your accountant) prior to your participation date;
- Any matter in relation to applications, assessments or reviews of government benefits or entitlements;
- Any ATO audit where the auditor imposes a final shortfall or culpability penalty of 75% or more;
- Any punitive costs such as penalty tax, costs, interest or any fines;
- Costs for work incurred which should have been undertaken prior to the audit, enquiry, investigation or review taking place (e.g. outstanding lodgements);
- Any actions in regard to correspondence from any authority that is educational or advisory in nature or merely suggest, invite or propose actions to be taken; or act as a warning to you that you may be selected for an audit at a future time; or do not compel you or us to take any action.
how do i get a quote for audit insurance?
Contact Sandra Cox of our office on (07) 3808 4499 for a no obligation quote that has been tailored to your specific circumstances.