Why you need tax audit insurance

Why you need tax audit insurance

As promised, the ATO have begun their integrity checks on the validity of claims and applications for the various stimulus measures provided in response to the economic fallout of the coronavirus pandemic.

A number of March 2020 and June 2020 quarter activity statement audits and reviews all in respect of cash flow boost have been initiated and are currently being examined.

A large number of cash flow boost eligibility checks and eligibility information requests which are not official reviews or audits of an activity statement are also being undertaken.

A particular focus area is the large number of cash flow boost audits and reviews where PAYG registration occurred in the March 2020 quarter or there was a large increase in W1 & W2 on the March 2020 and/or June 2020 quarterly activity statement compared to previous lodgements which attracted the attention of the ATO.

Most business owners are concerned about the potential costs to them should they be subject to an audit, enquiry, investigation or review by the ATO or other government revenue agency.

Tax audit insurance, in particular Audit Shield, can help to alleviate this concern.

Business owners are generally aware of the increased levels of audit activity and understand there is nothing that accountants can do to stop it. Regardless of whether our work as an accountant has been completed correctly, business owners can still be subject to audit activity.

Audit Shield should be considered by business owners as it is a proactive offering which provides them with a choice – a choice between incurring additional costs for their accountant to handle the audit matter on their behalf or paying a small reasonable tax deductible premium that takes care of the majority of audit activities, looks after their financial wellbeing and gives them peace of mind.

Contact Angela Tirabassi on 5561 2643 to get a quote for the premium on your Audit Shield cover for your business TODAY.

Have a great day!

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