In the coming days you may receive an invitation to take up Audit insurance with Audit Shield.
What is Audit Shield?
The 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 or review (audit activity) instigated by the
Australian Taxation Office (ATO) or other Australian Government revenue agencies.
What is the benefit of the 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 the Audit Shield service, you can 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 the 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 cover limit as stated on your Client Acceptance Form is exhausted, will be covered under the 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 (see the attached Client Acceptance Form for further details).
What audits, enquiries, investigations and reviews are covered?
|-Capital Gains Tax||-PAYG|
|-Land Tax||-Superannuation Guarantee|
|-SMSFs (cover available separately||-GST/BAS|
|-Employer Obligations||-R & D Tax Incentive (ATO Only)|
|-Payroll Tax||-WorkCover/Workers Compensation|
|-Stamp Duty||-Income Tax|
|-Fringe Benefits Tax||-Record Keeping|
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 agency 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.
- 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.
- If the ATO auditor imposes final culpability/shortfall
penalties of 75% or more, and/or the return is deemed to
have been fraudulently lodged.
- Costs for work incurred which should have been undertaken
prior to the audit activity (e.g. outstanding lodgements).
- 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
- Audit activity where notification was given prior to the inception
of cover (i.e. prior to our receipt of your participation fee).
Is the cost tax deductible?
Yes. A tax deduction should ordinarily be claimable for your participation fees.
If you would like to know more contact us for information.