Every year the Australian Taxation Office chooses thousands of businesses and individuals for reviews and audits. These can vary in complexity from a simple call or letter asking to provide evidence or information to more extensive examinations involving all of your records. Being pulled up for a tax audit is a very real possibility. Some years the ATO will also target specific industries or similar types of claims.
Responding to a tax audit can be stressful, disruptive to your business and also expensive. Tax Audit Insurance can help to alleviate some of the concerns involved and ease the financial burden when it comes to audit time.
A tax audit can come at any time from the ATO, from any authorised Australian government agency or authority, or from anybody authorised to conduct an audit of a Workers Compensation return. When this time comes around, you can face paying for hours upon hours of extra time put in by your accountant or hired professional. And although we like to think it wouldn’t be the case, there is also the risk of fines or penalties should something come up during audit which can potentially add extra cost burdens.
Tax Audit Insurance can reimburse your business for monies paid to the professionals involved with your accounts. Accountants and their consultants can be paid out for the extra work performed during the tax audit either straight to yourself, or directly to them depending on the claim.
Tax audits are part of running your own business and the ATO performs these to ensure compliance and that tax obligations are met by all. If you own or run your own business as an entity or as an individual, and you lodge tax returns with the ATO, there is a chance that you may be part of the thousands of people requested for audit every year.
The extra time needed to perform an audit can pack a financial punch, and it is a wise idea to be ready for it. Pulling the extra money out of a small to medium business can be very difficult and insurance can help to protect your savings and minimise the risk.
Tax audit insurance premiums will vary for each unique business and individual. Your insurance may cover elements such as professional fees paid to tax agents, advisors, accountants and solicitors, for employee over time in relation to the audit, and travel and accommodation should you need to travel to attend an audit.
The extent of cover and nature of your business will determine the cost of your premiums for Tax Audit Insurance so it is best to get a direct quote for this, however premiums can be low to meet your budget.
Contractor Cover has extensive experience with providing Tax Audit Insurance to many small, medium, and large Australian businesses across multiple industries so you can rest assured you will be receiving the very best advice when it comes to your insurance policy options.
Although we hope you are not put through the stress of tax audit, we know that it is a very real possibility for you as a business owner. The right Tax Audit Insurance Policy will provide you with the peace of mind that your finances will be protected should an audit be requested and you will be able to go about performing your work with confidence.
The Contractor Cover quoting system is one of the fastest ways contractors can get a quote and arrange their Tax Audit Insurance. It doesn’t matter what type of contractor you are, Contractor Cover can help you find the best policy for your needs. To organise a quote just fill out our quick online form or give our office a call on 1300 GETCOVER (1300 438 268) to speak to our Contractor Cover real-life team.