Audit Protection Insurance
20 August 09
WHAT IS AUDIT PROTECTION INSURANCE?
Audit Protection Service provides for the payment of professional fees otherwise payable by you when incurred as a result of our firm being required to respond, on your behalf, to an audit, review or investigation by the ATO or other Government body. It provides you, as our client, with a fixed, cost effective solution to guard against unbudgeted professional fees, which may be incurred and can be quite considerable depending on the length of time involved.
WHAT IS THE BENEFIT OF THE AUDIT PROTECTION SERVICE?
If you are faced with an audit, review or investigation of lodged returns, our professional fees incurred should ordinarily be covered.
Take a moment to consider the likelihood of being audited, reviewed or investigated and if you have the ability to pay the professional fees involved which will depend on the length of time involved to conduct the Audit.
WHAT AUDITS, REVIEWS AND INVESTIGATIONS ARE COVERED?
WHO IS COVERED?
- salary and wage earners;
- sole traders or partnerships with turnover under $500,000;
- businesses or business groups with turnover over $500,000;
- 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.
HOW MUCH DOES AUDIT PROTECTION COST?
|
|
Category |
Limit of cover |
Cost to You |
|
A |
Salary & Wage |
$10,000 |
$110 |
|
B |
Salary & Wage (inc Spouse) |
$10,000 |
$165 |
|
C |
Private Super Fund |
$10,000 |
$330 |
|
D |
Sole Trader / Partnership <$500K |
$10,000 |
$253 |
|
E |
Business Entity < $500K turnover |
$10,000 |
$450 |
|
F |
Business Entity $500 - $1m turnover |
$10,000 |
$485 |
|
G |
Business Entity - $1m - $3m turnover |
$20,000 |
$655 |
|
H |
Business Entity - $3m - $6m turnover |
$20,000 |
$780 |
|
I |
Business Entity - $6m - $10m turnover |
$20,000 |
$930 |
|
J |
Business Entity - $10m-$25m turnover |
$30,000 |
$1,425 |
|
K |
Business Entity - $25m-$50m turnover |
$35,000 |
$1,610 |
|
L |
Business Entity - $50m-$75m turnover |
$35,000 |
$2,650 |
IS THE COST TAX DEDUCTIBLE?
Yes, a tax deduction can be claimed.
WHAT IS NOT INCLUDED?
There are a number of things not covered by Audit Protection, the main ones being where:
- The GST component of the professional fees.
- The review or audit was underway before coverage began.
- The return that is the subject of scrutiny was prepared fraudulently;
- The ATO impose a final culpability penalty of 75% or more (typically, this is in cases of recklessness or deliberate evasion);
- There are fees associated with a criminal prosecution;
- Costs are incurred for work which should have been done prior to the audit or review taking place.
WHO PROVIDES THE AUDIT PROTECTION INSURANCE?
WHAT DO I NEED TO DO TO TAKE UP AUDIT PROTECTION INSURANCE?
Simply contact our office if you have not received your form in the mail and we will post it to you.