Death and Taxes
As the saying goes, only 2 things in life are certain – death and taxes! We can’t protect you against the costs of death except to say eat good foods and exercise more often. But we can help out with the unexpected costs associated with your taxes. These unexpected costs can arise in the form of audits by government bodies.
What are random Tax and Government audits?
Random audits, reviews and investigations by the Australian Taxation Office (ATO) and other government agencies are becoming more prevalent. The purpose of these audits is to ensure business and tax payer compliance with various tax and legislative requirements such as Income, Land and Payroll tax,GST,FBT,Record Keeping, Workers Compensation, Employer Obligations, Superannuation Guarantee, and Self Managed Superannuation Fund Compliance amongst others.
What are the costs in the event of a random audit?
In the event of a random audit, the burden is on the tax payer to supply the information required to the government agency.
Even a seemingly simple GST audit can eventuate in to a larger audit which can take many hours of time and be very complex in terms of requests from the ATO.
During the audit it is wise for the tax payer to be guided by their accountant.
By providing the correct documentation and reports, the outcome can be more favourable for the tax payer.
With the complexities involved in the Australian tax law, professional help is almost a necessity during these audits.
Depending on the amount of time involved in the audit, the costs for accountants help can often run in to the thousands of dollars.
These costs are an unexpected expense for the tax payer.
How can you protect yourself against these costs?
At Elevated Accounting we offer tax audit insurance for all of our clients. The insurance covers the accounting costs up to a precribed limit(with no excess) of guiding our clients through audits, reviews and investigations by the ATO and other government bodies.
So during the stressful time of an audit, the thought of also paying for the help of the accountant is not an issue.
The insurance also covers the cost of lawyers, bookkeepers, and other specialist advice if necessary.
One policy can cover all members of a business group, including the associated individuals. Different levels of cover are available and the cost is fully tax deductible.
Call us today on 9682 7011 to receive an information pack or discuss how you can protect yourself.