Small to medium businesses or individuals. The costs of an Audit can be very high. This is often an unbudgeted expense which can run to thousands of dollars
The Tax Commissioner has predicted that almost 15% of small to medium enterprises, will be subject to the ATO’s compliance program, including some form of tax audit.
This has led to a dramatic increase in ATO field audits on small to medium-sized business, individuals, and Self-Managed Superannuation Funds.
Each audit can lead to additional work for your accountant and potentially significant costs for your business.
Professional fees incurred by the Practice to assist an insured client respond to any form of examination, enquiry, investigation, review, audit and the like of that client or their lodged returns or completion of a questionnaire sought by various State and Commonwealth Government Agencies.
The definition of ‘audit’ is broad reaching and includes those agencies that the Practice would directly assist in the event of a returns audit, compliance audit or questionnaire, including ATO Section 264 type notices.
The cost of the policy is low compared to the potentially significant costs to your business that an audit may involve.
Remember that insurance premiums are usually tax deductible as a business expense.
Each policy is different, but generally you won’t be covered: · To substantiate a GST refund. If it’s more involved than that, professional fees incurred are covered) · Where a return has been prepared and lodged dishonestly or fraudulently and the relevant government agency must state so in their final assessment. · Where a client is deemed by a relevant government agency to have deliberately acted in an evasive or reckless manner and must state so in their final assessment. No culpability percentage applies. · Returns lodged outside of Australia. · Returns lodged more than three months after the prescribed date or any authorise extension. (This exclusion applies more to new clients. · Fraudulent claims · Any amended assessment, fines or penalties. · Where the likelihood of an audit occurring has already been flagged or communicated or a notice of a pending audit has already been received. · Any activities involving mass marketed schemes without a prior product ruling; money laundering; foreign sourced income not properly declared; or the use of tax havens or the like. · Clients that voluntarily or enter into some form of administration or receivership etc. |
Can your business afford to pay?
T: +61 3 853826 99 / 8538 2688
F: +61 3 8538 2600
E: admin@yblgroup.com.au
374 Lygon Street
Brunswick East, VIC 3057, Australia
Mon – Fri 9:00 AM – 5:00 PM
Liability limited by a scheme approved under Professional Standards Legislation