Tax Probe Insurance is designed to cover your business for professional fees associated with tax audits and official investigations of your tax affairs.
The cover is available as stand-alone cover, or can be purchased as part of a “Business Insurance Package”.
What does it cover?
- Standard cover for tax audits or other official investigations into your liability to pay designated tax carried out by any Commonwealth, State or Territory department, body or agency.
- Optional cover for the audit of business directors’ own tax returns.
- Travel and accommodation expenses incurred in the process of the audit or investigation of tax affairs.
- Stand-alone cover includes the option to cover the audit of self-managed superannuation funds under the Superannuation Industry (Supervision) Act.
Cost of the Policy
The cost of the policy is low compared to the potentially significant costs to your business that an audit may involve. Remember that insurance premiums are usually tax deductible as a business expense.
Unexpected Accountant’s Fees
The Tax Commissioner has predicted that almost 15% of small to medium enterprises, will be subject to the Australian Tax Office (ATO) compliance program, including some form of tax audit. This has led to a dramatic increase in ATO field audits on small to medium-sized business, individuals and Self-Managed Superannuation Funds, with almost 80,000 audits conducted every financial year. Each audit can lead to additional work for your accountant and potentially significant costs for your business. Can your business afford to pay?
The Australian Tax Office is focusing on both Undeclared Income as well as Cash Only Businesses.
What Industries are under the Spotlight?
The following industries are currently under review.
- Building and Construction
- Hair and Beauty
Keep in mind, all industries and businesses are at risk of a tax audit, but the ATO will choose specific industries each year as key focus to make sure no business is left un-turned.
- Electrical Contractor, 2 year audit – PAYG and Superannuation, $4,790 in professional fees were incurred.
- Transport Industry, 3 year audit – Fuel Tax Credits, $25,823 in professional fees were incurred.
- Construction Industry, 4 year investigation – Payroll Tax, $11,820 incurred in professional fees.
Contact us at Citycover on (07) 3270 1500 to speak with one of our experienced insurance advisers today.