As part of our products and services, we offer Audit Insurance to all of our clients (both business and individual).
We partner with Accountancy Insurance for this product as they seem to have the most well rounded and competitive policy. We stress, this policy is entirely OPTIONAL.
We hold a tax audit insurance policy in our business name. By taking up our Audit Shield service, we will include you and your entities in our policy.
To find out more about the company who will be providing this, read here.
Our yearly policy runs from November until June.
It’s also important to note that in order to sign up for Audit Insurance, you must have been a client of ours for at least 6 weeks.
If you would like to sign up, please simply let us know and we’ll get it organised.
Here is some information from Accountancy Insurance:
What is our Audit Shield service?
Accountancy Insurance’s Audit Shield service provides for the payment of our professional fees otherwise payable by you when incurred as a result of our accounting firm being required to respond, on your behalf, to an audit, enquiry, investigation, review or examination (audit activity) of your lodged returns or your financial compliance obligations instigated by the Australian Taxation Office (ATO) or other government revenue authorities.
What is the benefit of our Audit Shield service?
Data matching becomes more sophisticated each year.
This makes it simpler and far more likely for previously untargeted tax payers to encounter audit activity, despite compliancy. With our Audit Shield service, you can be rest assured knowing that our professional fees will be covered, and the accounting and taxation work will be undertaken, in relation to the audit activity. Often these fees can be greater than those we may charge you for completing the return(s).
What is included under our Audit Shield service?
Professional fees otherwise payable to us that have been incurred in responding to audit activity until the completion of the matter, or until the level of cover as stated on your Client Acceptance Form is exhausted, will be covered under our Audit Shield service. Fees of any other external specialist (e.g. taxation lawyers) or relevant consultant engaged or instructed by us to assist us in a response to audit activity are also covered. Both during (interim payments) and/or upon conclusion of the audit activity, we will present for payment our fees on your behalf to the insurer for recovery against the policy. Should a difference arise between our fees and the amount available to be covered against the policy, we may need to seek the shortfall payment of our fees from you. Your cover begins from the next business day after our receipt of your participation fee.
Will my professional fees be covered?
Yes. Costs (professional fees) which are directly related to the work we are required to undertake as a result of audit activity will ordinarily be covered (up to the prescribed cover limit). The cost of these additional fees can be considerable depending on the amount of time required to attend to the audit activity. Standard fees associated with any typical compliance or other work conducted throughout the year are excluded.
Is the cost tax deductible?
Yes. A tax deduction should ordinarily be claimable for your participation fees.
Please note that any ATO or other government revenue authorities official enquiries, investigations, reviews or examinations that subsequently change or increase in scope or continue, progress, expand, escalate or evolve into an official audit are always considered to be the one claim matter under our Audit Shield service that commenced on the date of first contact made by the ATO or other government revenue authorities to either our clients or to us.
Is it possible to arrange a pro rata fee for our Audit Shield service?
Yes, depending on your date of payment a pro rata fee may be available. Please speak with us to discuss the specifics of this option.
What audits, enquiries, investigations and reviews are covered?
- Capital Gains Tax
- Employer Obligations
- Fringe Benefits Tax
- Income Tax
- Land Tax
- Payroll Tax
- R & D Tax Incentive (ATO Only)
- Record Keeping
- SMSFs (cover available separately)
- Stamp Duty
- Superannuation Guarantee
- WorkCover/Workers Compensation
- Plus more
What is not included?
We have carefully selected our Audit Shield policy to provide the widest possible coverage for us and our clients. However, we do remind our clients that such items or circumstances as listed below are not covered:
- Actions in regard to any notices from the ATO or any other government revenue authorities that are educational or advisory in nature or merely suggest, invite or propose actions to be taken by you; or act as a warning to you that you may be selected for audit activity at a future time; or do not compel you to take any action.
- If the ATO auditor imposes final culpability/shortfall penalties of 75% or more, and/or the return is deemed to have been fraudulently lodged.
- Other than post payment reviews or audits by the ATO of the Covid-19 JobKeeper payment support package, any matter in relation to applications, assessments or reviews of government benefits or entitlements and any form of activity involving a review relevant to you maintaining industry status, licence compliance, membership or any form of application, registration or reregistration process.
- Any fine or penalties imposed or for any amounts payable pursuant to an amended notice of assessment or adjustment including but not limited to any additional tax, duty, government impost or similar payments.
- Costs for work incurred which should have been undertaken prior to the audit activity (e.g. outstanding lodgements).
- Audit activity where notification was given prior to the inception of cover (i.e. prior to our receipt of your participation fee).
Who is Vero Insurance?
AAI Limited trading as Vero Insurance is a wholly owned subsidiary of Suncorp Group Limited.
Ok, sign me up
If you’re a client of ours and would like to sign up with Audit Insurance, please simply let us know and we’ll get it organised.