It is a common misconception that you will only be audited if you are not compliant. The approach by the Australian Taxation Office (ATO) and other government bodies in this respect has changed. An audit can be triggered by something as simple as receiving a BAS refund that is larger than normal because of a capital purchase.
Over the last couple of years, we have offered the services of a company called Accountancy Insurance, who provide a comprehensive tax audit insurance product which covers the professional fees incurred as a result of an official audit, enquiry, investigation or review instigated by the Australian Taxation Office (ATO) and other federal, state and territory based agencies.
The first question many people ask is ‘What constitutes an audit?’ Here’s the good news! An audit is broadly defined under the policy to include any official audit, enquiry, investigation or review, in respect of returns or financial compliance obligations, and which we are obliged to respond to, or act on.
A claim can be lodged for the professional fees that would normally be charged for assisting you to respond to any eligible query from the ATO or State Based Authority (for example, State Revenue Office, or WorkCover Authority) which is authorised to conduct audits. There is no excess on the policy.
Once you are an Audit Shield client, previous lodgements are covered too!
The audit must be instigated during the period of cover, but can include responding to audits of returns you did not lodge or prepare.
The following official audits, enquiries, investigations and reviews are covered by Audit Shield:
• Income, Land and Payroll Tax
• BAS/GST Compliance
• Workers Compensation/WorkCover
• Superannuation Guarantee and Compliance
• Self Managed Superannuation Funds
• Record Keeping
Should you require any further information regarding Audit Shield, please do not hesitate to contact our office.