We have established an Audit Insure policy and invite you to be part of that policy.
The Audit Insure policy reimburses external professional fees (typically accountant, tax agent or bookkeeper) incurred to assist you respond to an audit undertaken by a government agency on previously lodged returns, declarations, filings; a compliance audit of a trust, self managed super fund, business entity; or completion of a questionnaire.
The Audit Insure policy doesn’t reimburse your time. The aim is for you to engage paid professional help to resolve the audit or compliance matter.
Audits*, compliance audits and questionnaires can be instigated by a wide range of Local, State and Commonwealth Government Agencies you may deal with and where your accounting, financial or tax advisers can assist. (*the word ‘Audits' includes any form of random examination, inquiry, investigation, questioning, review or audit.)
The types of government agencies might include, but are not limited to, those that administer income tax; fringe benefits tax; capital gains tax; goods and services tax; pay as you go tax; customs duty; grants; superannuation; stamp duty; payroll tax; land tax; social security; workers compensation; gaming tax; withholding tax; etc.
Individuals, Trusts, Stratas, Self Managed Super Funds ('SMSF'), Self Employed, Business Entities, Associations, For and Not for Profit Organisations and the like.
Grouping can occur where there are direct family members that may also have a Trust or SMSF or have common majority ownership of one or more Business Entities
There’s no precise answer as each party’s circumstances are different. It’s possible to be audited by more than one government agency in the same 12 month period or be exposed to a multiple year audit, i.e., a 5 year income tax; workers compensation; or payroll tax audit.
The larger the number of parties listed to be insured and the larger the number of government agencies the parties deal with, the higher the sum insured selected. The Application Form (see below) provides further guidance.
Whilst never a fun activity, it’s best to read the Policy Wording.
As a summary:
- Substantiation. (This exclusion purely relates to the provisions of (say) 6 or so Tax Invoices to substantiate a GST refund. If it’s more involved than that, professional fees incurred are covered)
- Where a return has been prepared and lodged dishonestly or fraudulently and the relevant government agency must state so in their final assessment
- Where a client is deemed by a relevant government agency to have deliberately acted in an evasive or reckless manner and must state so in their final assessment. No culpability percentage applies.
- Returns lodged outside of Australia. (If clients with operations in New Zealand, similar cover can be organised)
- Returns lodged more than three months after the prescribed date or any authorised extension.
- Fraudulent claims.
- Any amended assessment, fines or penalties.
- Where a notice of a pending audit has already been received.
- Any activities involving mass marketed schemes with a prior product ruling; money laundering; foreign sourced income not properly declared; or the use of tax havens or the like.
- Where a party voluntarily or enters into some form of administration or receivership etc.
There are several audit or tax insurance products available, however, what sets Audit Fees Paid apart from the others is:
- Unquestionably, the widest scope of cover available
- Competitive premiums
- Ease of administration and prompt claims settlement
- Managed by executives involved in audit insurance since 1987
The highly regarded and industry awarded QBE Insurance (Australia) Limited.
You can download the Claim Form from www.auditfeespaid.com.au.
Follow the instructions with respect to the supporting documents required to complete the claim. For further assistance, contact us.