Tax Audit Insurance – What does it cover
The Tax office states each year that they will be targeting certain business industries and sectors for tax evasion. Each Year many businesses are contacted by the ATO to conduct an audit/ investigation of their tax affairs. The costs of these audits and the time taken to organise the paperwork for viewing is time consuming and can be expensive.
The Extent of the cover will depend on the options you select:
1. Business Audit Only – including investigation costs. (Be warned some insurers don’t cover investigation costs, always select including investigation cover). This cover EXCLUDES Personal Tax returns of the directors and the Superannuation funds.
2. Business & Directors cover – again including Investigation costs. (excludes Superannuation and self-managed funds)
3. Individual Cover – excluding Self-Managed Super funds and super funds, business audits.
4. Superannuation Funds – Excluding Directors, and business audits.
Tax Audit insurance will not pay any penalties or fines. Rather the investigation costs, accrued by the accountant/ statutory body to provide the information required for the Audit or investigation.
Tax Audit cover will not cover if you are Audited because if you haven’t lodged your tax returns, or your failure to provide the information required to the Tax department or statutory body. The policy will cover the. Accountants fees and time to provide the aui
Tax Audit can often be added to your business package or your management liability insurance, otherwise is available as a standalone policy, renewable yearly.
You are able to select a variety of options for covers depending on the size of your company and your audit requirements. Talk to your broker today about getting a quote for Tax Audit Insurance.
Please be aware that any advice offered is General Advice only and has been prepared without taking into consideration your objectives, financial situation or needs. Before deciding to acquire a financial product please consider the Product Disclosure Statement and whether the product is appropriate for your individual objectives, financial situation and needs.