Audit Insurance Protection
As you’re aware, various State and Commonwealth Government Agencies can undertake an audit of you or your business or of returns you have previously lodged with them. These government agencies oversee Workers Comp, Payroll, Stamp Duty, Gaming & Excise, Customs, Income Tax, Fringe Benefits Tax, Capital Gains Tax, Goods & Services Tax, Superannuation Contributions & Funds (both company and private), Company Returns (ASIC), etc.
Having procedures and paperwork in order, whilst essential, isn’t immunity against being exposed to an audit. Preparing and undergoing an audit, plus sorting out any identified issues, can be very expensive, plus costs are unexpected and unbudgeted, which impacts on personal or business cash flow.
You and your business can be protected by audit insurance. For a nominal premium, external professional fees (typically accountancy fees, but also including other professionals such a solicitor) incurred in responding to the audit are insured. You can take personal and financial comfort knowing that your accountancy firm’s time will be paid by the insurer.
Audit Insurance also gives peace of mind where you have sold an asset or a business, which is then subjected to an audit several years after the sale. The combination of self assessment; the complexity of capital gains tax and exemptions; and rules governing movements in and out of self managed super funds, see many tax payers being subjected to CGT audits after the event.
The ATO can currently audit back 7 years, however, most income tax audits go back 3 years, BAS audits back 1 to 8 quarters and CGT back 3 years; workers compensation and payroll tax audits are typically back 5 years; etc.
We highly recommend that you and your business consider Audit Insurance to ensure financial protection.
The best approach is to contact us on (08) 8384 4400 to obtain a quote.