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TAX AUDITS – WILL YOU BE COVERED?

LSH Accounting - Monday, October 01, 2012

As each year passes the ATO is becoming increasingly aggressive with their audit activity. In the past few years our office has seen more tax office audits than the last 20 combined. It is generally accepted in the “tax” industry that this trend will only grow as the ATO’s IT systems continue to become more sophisticated and able to target industries and taxpayers for audit attention.

 

Many clients audited have been revealed to be fully compliant which, of course comes as a huge relief to them. However, even in these cases there is a downside and that is the costs involved in order to comply with the ATO audit process. In some cases these costs are substantial. It is also important to note that in the audit process the ATO has complete control which means that audit compliance costs accrue according to the manner in which the ATO conduct the audit. In some cases, the ATO process has been quite inefficient which only increases cost.

 

We now offer Audit Insurance in order for clients to protect themselves (or their business) from any costs relating to an ATO audit. We have introduced this service through a specialist company in order to allow clients to reduce the cost risk in any audits, should they choose to do so. This company will in turn organise the cover and the price.

 

Audit Insurance is available to all clients and can provide peace of mind by being able to hand the entire management of the audit over to us and knowing that the accounting fees incurred in complying with the audit are completely covered (up to the limit of the cover).

 

All premiums are tax deductible and competitively priced. Premiums are determined by the insurer based on the size of the business entity or group and are advised up front.

 

If you would like further information about Audit Insurance please contact Jane Smith at our office.