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Tax audit insurance: “Iceberg, dead ahead!” Posted on October 9, 2018
So this month we have provided more detail on how it works.
As we reported last month, the tax office has stepped up its audit programme and focus on compliance activities.
This, by default, will result in additional revenue for the tax office, levied through penalties, interest and amending assessments at the cost of the tax payer.
When an individual or business is selected for an audit they will, generally speaking, contact their accountant for assistance in making sure everything is in order.
This costs money. Some times lots of it.
In fact, the cost of getting it wrong and providing the tax office with incorrect or unsubstantiated claims can often result in the tax office taking a CLOSER look at your affairs.
You can protect yourself against costs that you have to pay your professional advisor, tax agent or accountant with audit insurance.
This insurance safeguards you from the professional costs associated with an audit charged by your advisor – It DOES NOT cover the costs of any errors or omissions you may have either carelessly, wrecklessly or deliberately made in relation to your affairs.
Penalties can be severe, so it is important to make sure when the tax man comes knocking you are covered – as we said last month, EVERYONE will be audited within the next 3 years.
Audit insurance can help provide you with peace of mind and protect you from potentially thousands of dollars in professional fees.