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Is the tax man coming to get you?

AUDIT – nothing send a shiver down your spine more than the word Audit, and when it’s the Tax Man that’s after you it adds to the tension and stress.

But the cost of a Tax Audit is the one area you need not have to worry about………

The mail man has just been and you are taking a leisurely stroll to the mail box.

Maybe today’s the day that you receive that long awaited notice of winning LOTTO.  You can retire, sell the buses, sell the run, hell, you’ve won millions, why not give the whole company away?

Wandering back to the house with a handful of brown and white envelopes, one in particular catches you eye.  No, it’s not from LOTTO.  It’s worse, much worse.  The logo on the top of the envelope has those dreaded letters – ATO – !  Guess what?  They are coming to do a random audit on your accounts to make sure that you have been declaring everything and paying them the correct taxes, stamp duty, superannuation etc. in line with other business of a similar nature.

This is going to cost, and could cost thousands of dollars.  You will need your accountant to get everything together for the targeted year.  It’s not unusual for fees charged by accountants to exceed $10,000 or even $20,000 dollars.  This could cause a potential financial loss to your business.

But fear not, there is a solution to your problem, its called TAX AUDIT INSURANCE. This insurance product is designed primarily to cover the cost of accounting fees incurred in the event of a random audit.

Premiums for these policies are not excessive and can be as little as $300 per year.  The premium increases with the amount of cover required, the type of business to be covered and the type of cover that is required.  Cover can also be extended to personal audits of the directors and associated businesses.  In the event of a claim, the insurer settles directly with your accountant leaving you to get on with running your business.

There are also products available that could cover other types of regulatory audits.  Like WorkCover, OH&S, EPA and other such Government audits.

What is an Audit?

An Audit can be defined as:

“any audit, official inquiry, official investigation, official review or official examination in respect of a return or compliance obligations submitted by or on behalf of [the accountant’s] client that is undertaken, initiated by, or instructed to be undertaken, as a result of specific notice given by:

1. the Australian Taxation Office, or

2. any Australian (Federal, State, or Territory) government agency or authority that is duly authorised to conduct an audit of a return including without limitation Centrelink or;

3. any body that is authorised to conduct an audit of a Worker’s Compensation return,

whereby [the accountant or the accountant’s] clients are compelled to act or respond otherwise [the accountant or the accountant’s] client will risk prosecution, fines, disciplinary proceedings, or other penalties.”

So, don’t stress when that letter arrives, arrange a Tax Audit policy with us and let us take care of you.

Disclaimer: As always, we recommend that you take the time to read the insurer Product Disclosure Statement (PDS) to ensure that this policy is sufficient for your needs and requirements and that you understand the terms, conditions and exclusions of the policy.

Should you require an obligation free quotation for Tax Audit Insurance or wish to discuss the this insurance further, please contact the BusInsure team on 1800 BUSINSURE (1800 287 467) or click below to request a call back at a time convenient.

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