Our Audit Shield service provides cost effective protection and peace of mind against professional fees incurred should the ATO or some other Australian government revenue agencies conduct a random review, investigation or tax audit in respect of lodged returns or financial compliance obligations.
The cover is provided through Accountancy Insurance, who are partners with over 3,000 accounting firms nationwide, and are acknowledged as continually setting the benchmark in Tax Audit Insurance. The group tax audit insurance policy is held in our business name and is underwritten by Vero Insurance. With 180 years’ heritage and the size, strength and scale of the Suncorp Group behind it, Vero is the preferred name in Australian general insurance.
What types of events are covered?
The following official enquiries, reviews, investigations and audits are covered by Audit Shield:
- Income, Land and Payroll Tax
- BAS/GST Compliance
- Workers Compensation / WorkCover
- Superannuation Guarantee and Compliance
- Self-Managed Superannuation Funds
- Record Keeping
- Research and Development (ATO Only)
- Stamp Duty
- Plus much more
What professional fees are covered in the event of a claim?
The cover extends to professional fees in responding to, or representing you, in a review, audit or investigation of your lodged returns or financial compliance obligations. These include not only our fees, but also legal, bookkeeping and other specialist professional advisor fees (e.g. quantity surveyors, valuers, actuaries, etc.) we may engage to assist with the response.
How much cover can I receive?
As a guide, individuals and businesses with a turnover of less than $1m would enjoy cover of $10,000. Businesses turning over between $1m and $10m would enjoy cover of $20,000.
How much does cover cost?
The cost varies depending on whether you are an individual, self-managed super fund or a business.
To give you a sense as to costs, the participation fee is $115.00 per year for an individual, and $480.00 per year for a business with a turnover of between $500,000 and $1 million.
The participation fee is fully tax deductible.
In the case of business cover, associated individuals and family entities can normally be covered together – for no extra cost.
How much cover can I receive?
The main exclusions are:
- The review or audit was underway before participation began.
- The return that is the subject of audit activity was prepared fraudulently;
- The ATO impose a final culpability penalty of 75% or more (typically, this is in cases of intentional disregard of the law);
- There are fees associated with a criminal prosecution;
Costs are incurred for compliance or any other work which should have been done prior to the audit or review taking place;
- Matters in relation to the application, assessment or review of government benefits or entitlements or maintaining industry status, licence compliance, membership or any form of application, registration or re-registration process.
Book a complimentary consultation
Learn more about Audit Shield and get yourself protected. Contact us for a complimentary consultation today.