A carpentry business can be demanding and requires a considerable amount of travel, long hours, and staying on top of safety regulations. While the satisfaction of your clients may be your main priority, it is crucial to give attention to bookkeeping and tax matters.
When you face a tax audit, Australian Taxation Office (ATO) will get in touch with you and ask to provide documents related to your tax filings, including logbooks, receipts and invoices. You may have to endure considerable expenses during an audit when you seek help from lawyers and accountants. Contractor Cover offers a comprehensive Tax Audit Insurance that reimburses your business for the costs of professionals involved in the process.
Top Things to Remember Before Tax Audit
As a carpenter, whether you work as a contractor or own a business, running your business can be demanding. Audits from the ATO are performed to ensure all individuals and companies meet compliance and tax obligations. Everyone who operates a business and lodges tax returns with the ATO may face an audit. Having a Tax Audit Cover provides you with security to avoid financial strain and protects your savings.
Tax Audit Insurance premiums vary depending on your needs and may cover various elements, including fees paid to tax agents, advisors, accountants and solicitors. It also covers travel and accommodation in instances where you are required to travel to attend an audit.
The cost of your premiums for Tax audit Insurance will be determined by the level of cover you require and the nature of your business. Contractor Cover offers different packages that will be customised to suit your budget.
In an audit, ATO officials will contact you to organise a suitable time for an initial meeting and then provide you with written confirmation. In the confirmation, you will find information about a meeting agenda, key issues that will be discussed during a tax audit and a draft audit management plan.
During the meeting, the ATO will cover the following:
- The audit scope
- The competition date
- How the ATO will conduct the audit
- The outline of expectations of you when ATO requests your records
- The advantages and procedures while making voluntary disclosures
- ATO’s risk hypothesis and any relevant information on the matter
Everything you discuss in a meeting with ATO will be formalised in an updated management plan that you can access after the meeting.
To find out more about a tax audit process, you can contact Contractor Cover where our experts can answer your questions. We have extensive experience with providing Tax Audit Insurance to Australian businesses of all sizes across various industries. The fastest and easiest way to get a quote and arrange your insurance is through our quoting system. To organise a quote and set up your cover, fill in a simple form or call Contractor Cover on 1300 GETCOVER (1300 438 268).