Tax Audit Insurance
Over the last few years the Australian Taxation Office (ATO) has significantly increased its audit activity as a result of increased Federal funding. Now individuals, businesses and Self Managed Superannuation Funds are more likely to be at risk of being selected for an audit.
Unfortunately, the instigation of an audit or investigation by the ATO, or indeed any Federal or State revenue agency, will result in costs to you. Even if there are no adjustments there can still be substantial costs associated in the preparation of material and in managing the response process.
It is for this reason that ClearCorp has taken out Audit Insurance to cover the professional fees incurred in preparing all relevant documentation and responses to the ATO, or any other Government Agency conducting an Audit, Review or Investigation. This policy, underwritten by Vero Insurance Ltd, which is a wholly owned subsidiary of SunCorp Limited, covers these costs (up to a prescribed limit) for any audits, reviews or investigations relating to the current year’s return, and all previous years.
This cover does not automatically extend to you, however, we can add your account (on payment of the premium) to the list of clients participating in this service. In the event that you are subsequently subject to an audit, we will then seek to claim our fee and other associated costs directly from the insurance company.
We emphasise that there is no compulsion to take up this service, and that it is for each client to decide whether to participate
In offering this service to you we advise that:
- We have reviewed the terms and conditions of the policy and found them to be comprehensive and unambiguous.
- If you elect to participate in this audit cover, ClearCorp will receive a small administration fee to cover the processing cost of providing this service to you.
- We have satisfied ourselves that the premium cost to you is competitive with alternative insurance products.
Your participation in the Audit Protection Service commences on the day after we receipt your payment, and expires on 30 September each year.
Please advise if you require a copy of the insurance policy together with your email address and we will forward it to you.
Should you have any queries in respect of this offer, please do not hesitate to contact Jocelyn Bruemmer of our office.
Accountancy Insurance’s website
Read more – The Tax Man is Getting Tough
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