Why should I have tax audit protection?

There is a misconception that you will only be audited by the ATO if your financials raise a red flag. Unfortunately this is not true! Also, through no fault of your own, you may also be in a category of business that the ATO feels requires attention.

YOU COULD STILL GET AUDITED or REVIEWED!

What audits are covered?

• Income, and Payroll
• GST / Business Activity Statements / Record Keeping
• Fringe Benefits Tax, Capital Gains Tax, Stamp Duty
• Land Tax
• PAYE, Employer obligations
• Self Managed Superannuation Funds / Superannuation Guarantee
• And many other audits/reviews.

Subject to terms & conditions of the master policy wording.

What professional fees are covered?

Fees normally payable by you up to the completion of the audit or until the cover limit as stated on your invoice are exhausted. Fees of any other outside person or relevant consultant (e.g. Taxation lawyers) may be covered if the insurer has given prior approval.

Will I be covered if I don't use an accountant to prepare my returns?

Yes, but only for those returns not specified by the relevant government body as having to be lodged through a Registered Tax Agent i.e. BAS, Payroll, Work Cover etc. In order for cover to apply to Income Tax Returns, a Registered Tax Agent must have lodged these. Note: you must use a tax agent in response to the ATO enquiry.

If I live outside of Australia, am I still covered?

Yes! But only for clients who file a return with the ATO in relation to Australian activities.

As an SMSF trustee does AUDITSAVE audit insurance give us any protection?

Yes! AUDITSAVE audit insurance is the only insurance product of its type that gives trustees a level of insurance cover for Trustee Administrative Penalties under Sect 166 of the SIS ACT 1993

Is there an excess or deductible payable if I claim?

No.

Is the invoice attached tax deductible?

Yes, a tax deduction should ordinarily be claimable for your participation fees.

If I have tax audit insurance included as a part of another policy (Business Insurance or Management Liability etc) why do I still need to have AUDITSAVE audit Insurance?

The audit insurance cover provided under these types of policies generally are deficient in many areas. Some of these deficiencies include:

• They only pertain to the entity nominated in the schedule. When the ATO does an audit of an entity they are likely to extend the audit to ALL associated entities. AUDITSAVE audit insurance covers ALL associated entities unless stipulated otherwise.
• An excess could be applied. AuditSave insurance has NO excess to pay!
• The benefit limit could be quite small and less than a standard tax audit policy. The benefit limit could also be eroded by claims from another section of the policy (Management Liabilty for example). With AuditSave you will have been nominated a benefit limit ($20k for SMSF and up to $1m turnover, $50k for $1m - $75m turnover) which pertains only to the tax audit fees.
• The definition of an “audit” maybe quite narrow and related only to the ATO. AuditSave allows for investigations, reviews, and audits from the ATO and associated government departments

Do I own a tax audit insurance policy?

No. The tax audit insurance policy is held by Incra Group Pty Ltd. You have a tax audit protection service provided by Incra that operates under the AuditSave tax audit insurance policy.

This is a brief summary of cover please enquire for full policy wording for all covers and exclusions.