Every business, big and small is a potential audit target. It can be costly to your business and the costs can increase significantly if there is a problem.
Tax is complex
As a business owner, you should understand the importance of ensuring you are compliant with ATO requirements and legislation in terms of your business’ record-keeping, income tax, Workers’ Compensation, goods and services tax, as well as land and payroll tax. These are just a few of your tax obligations, and if you are audited, you will need to be able to provide the relevant information and records evidencing your compliance. As you can imagine, the process can drag on for lengthy periods.
Should you and your business be audited, you will be required to provide the ATO with any supporting information they require and you will be responsible for any costs incurred in doing so. The matter can be further complicated and drawn out should historical data or data relating to your interactions with other entities be required by the ATO.
Protect your business
Keeping your business from being audited is impossible, but ensuring you’re covered for accounting fees during an audit is crucial. Insurance kicks in when you’re selected for an audit and will cover your accounting costs (up to the designated limit of your insurance policy) of the audit. Depending on your policy, lodgements prepared by previous accountants can be covered too. You won’t have to pay fees incurred during investigations (up to the pre-subscribed limit), reviews and enquiries undertaken by the ATO. This can ameliorate the stress of the audit process and keep your business functioning as usual. As a holder of a group policy, Stones Sharp Audit Insurance Premiums are not only effective but also tax deductible.
A tax audit can be an unpleasant experience which can be minimised with tax audit insurance. We can also assist with a compliance risk review long before an audit is flagged. Get in contact with us about how we can help you prepare and get through a tax audit. (Terms and Conditions Apply to Stones Sharp Audit Insurance Group Policy).
FCPA & CA
Shane is a Fellow of the Australian Society of Certified Practicing Accountants and a Chartered Accountant.
Shane’s passion is to consider the clients, the client’s business and taxation affairs with a holistic approach whilst providing business mentoring, business strategies, systems development, taxation advice and taxation planning in order to assist his clients and their business achieve their goals.