Being slammed with a tax audit after you or your accountant has submitted your return is not only stressful for a number of reasons, it can be enormously expensive. You may not think of it like that, and may not think you’ll ever be called up to complete one, but think again: it does happen, it does happen often, and often when you least expect it! So have a think about the potential impact a tax audit could have on your business, and why covering yourself and your Perth business with tax audit insurance might be a very, very good idea.
What is a tax audit?
First things first! A tax audit is a review by the Australian Taxation Office (ATO) or any authorised Australian government agency or authority to see if you have done everything that the law requires you to do in the world of tax. This includes looking at whether or not:
- You’ve met regulatory obligations
- You’ve declared all assessable income received
- You’re entitled to the deductions and offsets you have claimed
Regardless of if you’ve been truthful or correct in your tax submission or not, the ATO will require you to provide them with any information they ask for. It could simply be because they are conducting an audit at random, or it could be about a specific issue. Either way, you must comply
What you’d be required to do
You can be notified of a tax audit in one of two ways: a phone call, or a letter asking you to provide further information or to verify that information. A tax audit can sometimes be a more lengthy process involving tax officers, or you or your staff going through boxes of receipts, statements and other documentation to provide requested information. When it gets complicated, it can be difficult to get on with your everyday work when you need to spend days or even weeks sorting through files to find specific details, or paying for a professional to do all this. Thankfully though, there is a little thing called Tax Audit Insurance that can save you time, money and a whole lot of stress.
The low-down on Tax Audit Insurance
Tax Audit Insurance can cover you by helping to cover the costs of hiring a professional or your accountant to carry out an audit for you. This means you don’t have to pay the costly hiring fees, and can get on with your everyday job to keep the cash flowing as it should. Your trusty broker can help you with Tax Audit Insurance, and explain more about exactly how it can work for you should you need to make a claim in the future.
To learn more about Tax Audit Insurance and to get covered, call Elliott Insurance Brokers today on 1300 635 315 and speak to one of our experienced brokers in Perth.
