Would you be covered if the ATO were to Audit you?
We have seen an increase over the past few years in the number of tax audits performed by the ATO.
With the linking of databases they are now able to see property sales, car purchases, international plane flights, dividends received from shares, and sales of shares and investments with the income declared on your Tax Return.
If your Tax Return income doesn’t match with your personal spending or repayment of loans, then the ATO may “red flag” you for a tax audit.
What is audit activity?
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 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?
- Capital Gains Tax
- Employer Obligations – Superannuation Guarantee / PAYG
- Fringe Benefits Tax
- Income Tax, GST and BAS
- Payroll Tax, Land Tax and Stamp Duty
- R&D Tax Incentive (ATO only)
- Record Keeping
- Self Managed Superannuation Funds (SMSFs)
(cover available separately)
- WorkCover/Workers Compensation
- Plus more!
Is the cost tax deductible?
Yes, a tax deduction can ordinarily be claimed.
Is it mandatory to participate in this 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 our Audit Shield service offer.
If you have not received an offer to take up this service and you wish to do so, let us know and we will organise and invoice to be sent to you.