Audit activity includes any audit, enquiry, investigation or review which is instigated by the Australian Taxation Office (ATO) and other relevant government agencies to ensure compliance with various tax and legislative requirements.
How common are audits, enquiries, investigations or reviews?
The ATO and other government agencies continue to focus on audit activity and are consistently provided with additional resources for this purpose. Now more than ever you are at risk of being selected for an audit, enquiry, investigation or review.
What is the Audit Shield service and why should it be considered?
Our Audit Shield service provides for the payment of professional fees incurred as a result of you being selected for an audit, enquiry, investigation or review.
The cost of being properly represented in these matters can be quite significant. Even if no adjustments are required, you could still be left with considerable professional fees if you are not protected by Audit Shield. Our Audit Shield service provides a fixed, cost effective solution to guard against these unbudgeted costs.
Who provides the Audit Shield service?
The Audit Shield service is provided by our accounting firm via a group policy we hold in our business name, which is underwritten by AAI Limited (trading as Vero Insurance).
What lodged returns/financial compliance obligations are covered?
Self Managed Superannuation Funds (SMSFs) (cover available separately)
Is the cost tax deductible? Yes, a tax deduction can ordinarily be claimed for your Audit Shield service payment.
Who is covered? All of our clients are invited to participate in our Audit Shield service. Different levels of cover are available for salary and wage earners, businesses with turnover under $100 million as well as SMSFs. In most cases individuals and other family entities can be covered with the business entities – for no extra cost. If you decide to participate, your cover commences one business day after your payment is received.
Is it mandatory to participate in the Audit Shield service?
No, Audit Shield is an optional service provided by our accounting firm to you, our client. You have the opportunity to participate in or decline the Audit Shield offer.
What is not included?
We have carefully selected our Audit Shield policy to provide the widest possible coverage for us and our clients. However, we do remind our clients that such items or circumstances as listed below are not covered:
Any audit, enquiry, investigation or review arising from any verbal or written communication of impending audit activity given to you or us (your accountant) prior to your participation date;
Any matter in relation to applications, assessments or reviews of government benefits or entitlements;
Any ATO audit where the auditor imposes a final shortfall or culpability penalty of 75% or more;
Any punitive costs such as penalty tax, costs, interest or any fines;
Costs for work incurred which should have been undertaken prior to the audit,enquiry, investigation or review taking place (e.g. outstanding lodgements);
Any actions in regard to correspondence from any authority that is educational or advisory in nature or merely suggest, invite or propose actions to be taken; or act as a warning to you that you may be selected for an audit at a future time; or do not compel you or us to take any action.
What do I need to do to participate in the Audit Shield service?
Please contact one of our friendly team members to discuss your participation and to arrange an acceptance form to be sent to you.
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