Over the last few years we have seen increase in compliance reviews and audit activities from both federal and state authorities (ATO, NSW Office of State Revenue and Work Cover). Review and audit activities can be very time consuming and expensive and you do not know when you will be selected. Anyone can be targeted, even if their lodgement is accurate (i.e. where you are due for a large legitimate GST refund on your BAS). It is no reflection on the quality of work from you or us (as your accountant).
Having audit insurance is a simple and economical solution to manage this financial risk.
In the event of a review or audit by any government authorities, the insurance will be available to protect you and your group. Depending on the policy you selected the cover can range from $5,000 up to $100,000 per annum for professional costs such as accounting, legal, qualified expert. Things you would be covered for include BAS & GST, Income tax, Fringe Benefits Tax, Superannuation guarantee, SMSF, R&D review, Capital Gains Tax, ASIC, Work compensation, payroll tax, land tax, stamp duty and customs duty etc.
The cost is deductible to you or your business and it will help you manage your cashflow without worrying about funding professional costs due to unplanned review or audit. We will be writing to our clients to ensure they are given the opportunity to consider audit insurance. Should they choose to take it up, we will work with them to assist them with taking up appropriate cover. Would you prefer to pay $15,000 in professional fees for an unplanned audit? Or would you prefer to pay a fraction of this cost each year to ensure you don’t have to deal with the inconvenience and have the right professional team looking after you with their costs fully covered?
Should you have any questions or would like to know more, please do not hesitate to contact us.
*Correct as of October 2014
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.