Tax Audit Insurance
Tax audits are an in-depth examination to verify the accuracy of the information reported to the Australian Tax Office (ATO) or other Authority. Each year, the ATO continues to announce increases in their audit activity as they target “dodgy” and inconsistent claims. Earnings from cryptocurrencies, ride-share apps and work-related expenses such as fuel and dry cleaning will be closely analyzed, as well as investment property deduction as the ATO moves to clarify returns that don’t quite add up.
Whether you are a business or an individual, there are a number of reasons that could trigger an audit from the ATO. These include:
Hundreds of thousands of Australians received letters from the ATO in 2018 that were flagged as unusual or were discovered to have undeclared income, and it is expected that this number will climb again in 2019.
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What is Tax Audit Insurance?
ax Audit Insurance protects you and your business from the cost of an unexpected audit. When you or your business is audited, documents detailing company structures, ownership entities, financial flows, asset acquisitions and more may need to be compiled. Explanatory notes and detailed calculations might be required to support claimed deductions, and legal interpretations and justifications may also need to be provided. This is not only time-consuming, but often requires the services of professionals such as accountants and lawyers, and can cost thousands of dollars. Tax Audit Insurance helps you stay in control financially, by making sure you’re not out of pocket when engaging with accountants and other professionals when an audit occurs.
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How can I purchase Tax Audit Insurance?
We have partnered with Guild Insurance to offer all our clients a comprehensive Tax Audit Insurance policy with a competitive premium. As a 100% Australian owned insurer, you can trust that you’ll be supported by a team of specialists that understand the Australian tax system.
The Guild Tax Audit policy provides cover for Professional Fees incurred when responding to an audit of:
The key benefits of the policy include: