The Australian Taxation Office (ATO) and other government agencies are cracking down on businesses and individuals in relation to tax audits and investigations due to a 55% increase in audit funding from the Turnbull government.
Australian businesses should stay alert in 2017 and be prepared for increased tax audit activity by the ATO as it aggressively looks for opportunities to raise revenue.
Now more than ever individuals, businesses and self-managed superannuation funds are at risk of being selected for an audit, investigation or review.
The cost of responding to a tax audit or government compliance investigation often becomes a major concern. The audit process can be time consuming in preparation time and time responding to audit findings and the costs can be substantial.
Tax audit insurance is a simple and cost effective way to cover the costs associated with an unforeseen Australian Taxation Office (ATO), Federal, State or Territory government audit, compliance investigation and enquiry. Tax audit insurance covers the costs of professional fees incurred whilst preparing for the audit from accountants, lawyers, bookkeepers and any others advisors required, and other expenses incurred during the audit.
Please note: This is a general description of cover only – full details are set out in the Policy wording