The Australian Taxation Office (ATO) and other government revenue authorities are consistently active in conducting audits, inquiries, investigations, reviews and examinations (audit activity) in response to lodged client returns.

When you are subjected to audit activity instigated by the ATO or other government revenue authorities – we, as your Tax Agent, are faced with two options.

1. Charge you, our client, the real cost of our professional services and time; OR
2. Absorb/reduce your fees to keep you as a client but impact our business’ bottom line.

In both situations, there is no win but there is an alternative service we provide to you, Audit Shield provided by Accountancy Insurance.

As you would cover your car or home, this service is to cover your business and associated entities within your group (including you personally).

Benefits of Audit Shield

• The cover is retrospective. Therefore the professional fees incurred in responding to eligible audits, inquiries, investigations, reviews and examinations of of your returns, irrespective of which year the returns were lodged, are included;

• Specialist fees are included. This includes tax experts, lawyers or other specialists engaged by us in relation to an opinion or defence;

• Your commonly owned legal entities and most shareholders are covered under one single annual fee (Superannuation/Retirement Funds are covered separately); and

• The fees paid for the cover are generally tax deductible.

Why should you consider opting in for the Audit Shield service?

When we mention the costs with insurance, clients become concerned about the potential costs to them should they be subject to an audit, inquiry, investigation, review or examination by the ATO or other government revenue authorities.

Opting into Audit Shield alleviates this concern.

Generally, you will be aware of audit activity and understand there is nothing that we can do to stop
it. Regardless of whether our work as your accountant has been completed correctly, you can still be subject to audit activity.

As our clients are our number one priority – we believe we need to offer you, our clients, an option regarding this cover. You and your business’ well being is a matter of great importance, which is why we need to advise you.

Key Elements

1. Claims relating to the following are covered:
   • BAS/GST
   • FBT
   • Income Tax
   • Payroll Tax
   • Record Keeping
   • SMSF’s
   • Superannuation Guarantee
   • Workers’ Compensation
   • Plus much more
2. Claims are usually paid within 14 days;
3. We hold a tax audit insurance policy in our business name. By proceeding with the Audit Shield service, we will include you and your entities in our policy.
4. The policy we hold is a group policy for Audit Shield and is underwritten by AAI Limited (trading as Vero Insurance), a subsidiary of Suncorp Group Limited, a prominent Australian based insurer; and
5. Accountancy Insurance complies with Australian privacy legislation. Financial or sensitive information pertaining to you, our client, will not be obtained by Accountancy Insurance.

For a list of audit examples and Frequently Asked Questions – please download the information sheet here.

Above information provided by Accountancy Insurance.

For a confidential conversation with an SRJ Walker Wayland advisor, contact us today.