Most Australian tax-paying companies will have to undergo a tax audit or ATO review at some point and although it can be a nightmare at times, you will be advised in advance of the audit. But what happens if a random tax audit comes knocking at your door? Would you and your business be prepared for it?
Since the cost incurred in attending to the requirements of a random tax audit or ATO review falls on the business being audited, a more efficiently-run operation with appropriate recording systems will help mitigate the often large Accountant and Tax Agent costs that add up during such an audit.However, no matter how well-run your business is or how systemised, it will still cost.
Audits happen to anyone
Having a random audit from the Australian Taxation Office (ATO) has nothing to do with the running of your business, the state of your books or any other factor. Generally, ATO Audits are completely random, which means that having a game plan in place for the day that it happens is key to saving you the time, costs and lost revenue as a result of attending to the audit or review.
It certainly means that no business is exempt from an ATO tax audit or Government body review.
Audits cost, no matter the outcome
When a random audit of your business has been completed, you will be liable for all costs no matter what the findings are. You will have to engage a Registered Tax Agent, an Accountant or an Accounting Firm to facilitate the process and liaise on your and your business behalf, which will cost you even more. Without a solid plan in place, you will succumb to the terrors of ATO audits and reviews, which usually slows down business, and are a genuine pain in the neck.
But there is a solution—an obvious, logical and simple one:
By calling on the services of a Certified Practising Accountant and being covered under our group policy of Audit Insurance with Stones Sharp, you won’t be caught off guard when the ATO selects your business as one it elects to investigate.
How this insurance will benefit your business?
Stones Sharp offers a Group Audit Insurance Policy that covers not only ATO Tax Audits, ATO and Government Body reviews, but also the following:
- Payroll tax
- Superannuation guarantee payments
- Activity statements and GST
- Fringe benefits tax
- Luxury car tax
- Wine tax
- Capital gains tax
In addition, this Group Policy Audit Insurance is available to all of the following:
- Discretionary Family Trusts
- Unit Trusts
- Self-managed superannuation funds
- Deceased Estates
- Sole Traders
If you are not particularly sure if you or your business needs Audit Insurance and the benefits of taking party on our group Audit Insurance Policy then, contact the Certified Practising Accountants and Consultants at Stones Sharp today, and be ready rather than sorry.