When you hear about getting audited by ATO, you don’t really expect you or your business can be audited. After all, you don’t know what ATO can be interested in your situation. Unfortunately, there has been reviews or tax audits done to a number of people, and it has made them consider tax audit insurance for themselves and their businesses.
What is a Tax Audit Insurance?
A tax audit will involve the ATO to check on your affairs and the information you provided if it is correct or have complied with your responsibilities. In the audit, other parties like you bank will be contacted in the process. Should there be inconsistencies in the audit, you may be required by ATO to pay a substantial money. If you’re on the receiving end of the tax audit, it can be stressful, costly and time-consuming.
The ATO pursue their announcement in increasing their audit activity, which can have certain individuals and businesses subjected to random audit or review. When audit happens, you’re obligated to provide the requested information, which can really be expensive if you want the services of a lawyer or accountant.
To save you from costly expenses, tax audit insurance will shoulder the hiring of professional accountants and lawyers. They will represent you or your business during any tax audit. This process can really be complicated especially if you have a huge business, and it’s the reason why people choose a professional to represent them in their behalf. With this insurance, the insurer will pay for all the costs caused by the tax audit or review.
Peace of Mind during Audit Time
Although the tax audit insurance won’t guarantee that it can pay the additional money that ATO will furnish once the audit is completed, but it can shoulder the cost of professionals you hire for the audit process. It may be wrong to assume that ATO audits can never happen to you, but they do random checks. If you know you’re doing the right thing, then you’re certain the tax audit will find no wrong. But if they do, you’re also certain your backed up with an audit insurance.