When the Australian Taxation Office (ATO) audits someone you know, you may not think the same thing will happen to you or your business. After all, ATO may not be interested in your situation. However, random tax audits and reviews are being done mostly these days, and it is indeed important to have a tax audit insurance company to handle your tax issues.
What is Tax Audit Insurance?
A tax audit will involve ATO to look in to your affairs to see that all information you have indicated in your tax reports are true and correct and that you have complied with all your obligations. While on audit, your bank can be contacted by the agency just to check what’s included in the process. If discrepancies are found in the audit, ATO may require you to pay fees. If this tax audit will happen to you, then it may cause expensive, stressful and time-consuming processes.
The tax agency has declared increasing their audit activities all throughout Australia, and this means businesses and individuals are subjected to random audit or review. When an audit is underway, you’ll be obligated to provide all the needed information, which means consulting a lawyer or accountant for help.
Having an audit insurance company can assure you have a professional accountant or lawyer to back you up with the tax audit. They can help in complicated tax audits, especially if you own a huge business. The best way to find your way out is to hire an expert for the audit. With the tax audit insurance, they can provide the cost, so you don’t have to worry about paying considerable penalties.
Peace of Mind During Audit Time
Although the tax audit insurance company may not assure coverage for additional payments that ATO requests once the audit is completed, it can shoulder the cost for hiring a professional to defend you on the audit process. You can hardly believe that ATO will subject you to possible tax audits, but they’re there for random audits and review when needed.
So, it’s best to have an audit insurance in place just to prepare you from the unexpected. It can save you from stresses and pressures that ATO will put on you. For this reason, the audit insurance company will provide peace of mind whenever this happens.