Tax Audit Insurance - Is your business protected?
22 June 09There has been a significant increase in audit activity
It used to be a question of if; now it seems a question of when. The Australian Taxation Office (ATO) continues to announce significant increases in audit activity. Even if there are no adjustments, there will still be costs associated in the preparation of the material requested and the managing of the response process.
Individuals, businesses and Self-managed Superannuation Funds are at risk
Now, more than ever, individuals, businesses and Self-managed Superannuation Funds (SMSFs) are at risk of being selected for a random government audit, review or investigation to ensure business and taxpayer compliance with various tax and legislative requirements. These include requirements with Income, Land and Payroll Tax, GST, Workers Compensation, Superannuation Guarantee and Compliance and Research and Development Grants.
When unprotected by audit insurance, all costs involved in providing the required information is your responsibility. This includes all accounting fees associated with responding to audits and any specialist fees where a lawyer or expert defence is required.
Here are some real life examples...
- Business - There was a construction industry business that received a fuel tax credit audit and had to pay $6,117 in fees.
- Individual - An individual paid $1,237.50 on a rental property audit.
- Super Fund - A Superannuation Fund paid $4,150 from an audit received.
Call us today to take out insurance for cover until 30 June 2010.
PJT Accountants & Business Advisors
p: 07 5413 9300