While some accountants charge extra for audit insurance and look to make a little extra cream off every client, we off Audit insurance to all clients, free of charge. While we don’t’ expect clients to get audited in the first place, it can happen from time to time. We always look to keep clients on the right side of the page to stay away from any potential audit issues.
ATO and other tax audits can be expensive and are on the increase, with the government to provide an additional $678.9 million to the ATO. To help Business Edge Accountants has Audit Protection Service that provides the cover you for all your tax audits wherein the bill for our services will be on the insurer and not on you!
Not too sure what all this means, well here is everything you need to know about tax audit insurance:
What are random tax and government audits?
Audits, reviews and investigations are conducted by the ATO and other state and federal government agencies to ensure businesses’ and tax payers’ compliance with various tax and legislative requirements, including income, land and payroll tax and GST.
Example 1:
A fly in fly out worker received a comprehensive review
Total accountancy fee: $4,637; cost to the you: $0
It’s not going to happen to me, how likely are you to get a “random” audit, review or investigation?
The ATO, along with other federal and state agencies, continue to announce significant increases in their audit activity. Now more than ever, individuals, businesses and SMSFs are at risk of being elected for a random audit or review.
How does this help me in the event of a random audit, review or investigation?
If you or your business return is subjected to a random tax audit, review, or investigation, you are responsible for the costs involved in providing the required information. Even the simplest enquiry can require hours of work and end up costing you hundreds or even thousands. In multiple years or multiple companies and trusts, thousands of dollars in accounting and legal fees can be incurred over the course of the audit.
Example 2:
A property developer is subjected to a client risk review.
Total accountancy fee: $17,550; cost to the developer: $975
What is the Audit Protection Service provided by Business Edge Accountants?
Business Edge Accountants Audit Protection Service is audit insurance that provides for the payment of professional fees incurred as a result of you or your business being selected for an audit, review, or investigation by the ATO.
Knowing that the cost of being properly represented in these matters can be quite considerable which can be quiet lengthy. The Audit Protection Service provides a fixed, cost-effective solution to guard against these unbudgeted costs and problems that may arise.
The policy covers all professional fees up to the prescribed limit (with no excess) when responding to or representing you in an audit, review, or investigation.
These include not only our fees but also legal fees, bookkeeping fees and specialist professional advisor fees.
Example 3:
A motor dealer received a business activity statement (BAS) query that led to a comprehensive review.
Total accountancy fee: $13,991; cost to the motor dealer: $0
What is covered?
Tax Audit Insurance for all clients and their entities
The key features of the policy include the following;
• $20,000 of accounting practice fees paid for any one claim
• Only available for current clients.
• A cost-effective way to avoid stress and disruptions that can be imposed by audit activity.
• Professional fees associated with audit activity (up to a prescribed limit) are covered.
• The cover is retrospective, so previously lodged returns are covered automatically.
What is covered see below:
• CGT, Employer Obligations, FBT, GST/BAS, Income Tax, Land Tax, Payroll Tax, PAYG, Record Keeping, Stamp Duty, Superannuation Guarantee, Workcover/Workers Compensation and plus more.
• Valued between $300 to $1000.00 per year.
**Terms and conditions apply.
All of our clients are covered under the Audit Protection Service. Just another reason to be with Business Edge Accountants, phone 02 6041 1687 to book an appointment today.