At any given time, the Australian Tax Office can exercise its right to subject a business to a random tax audit.
Audits can cover a multitude of areas, including, but certainly not limited to BAS/ GST compliance, FBT, Income and payroll tax, Work Cover and Superannuation compliance. The potential exposure to a business for a legislated audit is very real, and understandably, it is often something that is not budgeted for, especially in the SME space. Tax audits are far from cheap- it is not uncommon for a small business to have audit expenses upwards of $20,000.
How would this effect your companies cash flow? For many, it may be crippling. It is worth noting that the Tax Commissioner has estimated that up to 15% of all SME’s will be subjected to some form of Taxation Audit – for many it’s a case of not if, but when.
Tax Audit Insurance provides a simple, effective and reasonably priced solution to the very real possibility of being audited. Tax Audit insurance will cover your businesses fees for costs associated with Commonwealth/ State Government required audits and official investigations. Furthermore, tax audit products may extend to cover audits of the business directors tax returns. Take a look at the below examples to see just how much a Tax Audit Insurance policy could save your business: If you would like to discuss Tax Audit Insurance with one of our experienced brokers, please contact us.