It is a well-known fact that the ATO actively conducts audits of tax returns for individuals, businesses and SMSF entities. They also target BAS returns. As a part of Palfreyman Chartered Accountants' commitment to providing our clients with holistic service, our clients have access to Audit Shield Insurance which can help protect you from unplanned accounting and professional fees that might result from the ATO choosing to audit you.
If you are not sure if you should take out an audit insurance policy of some kind, consider some of the facts below:
1. Audits are becoming more likely by the year
Technological advancements in recent years mean that the ATO have gotten extremely smart with their data matching programs. This means that the chances of them cross checking your accounts, expenses and day to day activities is much higher than previously.
2. Preparing you for the unexpected
Responding to an audit is a complex and time-consuming matter. With audit insurance, you can have the peace of mind that any unexpected accounting and professional fees would be covered up to $10,000, in the case of Audit Shield Insurance.
3. Varying from the norm
It is common for the ATO to advise you that your deductions are significantly higher than what is considered standard for your occupation. If this is the case, the ATO may commence an audit.
4. Put simply, cost!
Audits can be an expensive and you might be worried about your ability to pay a large amount of money on very short notice. By covering accounting and professional fees up to the prescribed amount of your cover, audit insurance can take this stress away from you.
5. Previous tax returns are included
Audit Shield Insurance covers audits of previously lodged tax returns, even those that we did not lodge or prepare. So long as the audit is instigated during the period of your insurance policy, you should be covered.
All Palfreyman Chartered Accountants clients can access Audit Shield Insurance. Please contact us today on (02) 4990 3775 so that we can provide you with information regarding cost, and how you can take out this policy with the insurance provider.