It might seem that it is only the large corporations that are targeted by the ATO for random audits, but a large proportion of the ‘tax gap’ comes from small and medium businesses, as well as from individual taxpayers.
Typically, you will partner with your accountant to prepare your tax return/s, however there is always the prospect that something is overlooked or a mistake made. When the ATO notices any slights or errors in a settlement, it may conduct an audit of your own or your business’s tax affairs.
This year we are likely to see an increase in audits focussing on some key areas identified by the ATO as compliance risk areas: Income Tax, GST and Superannuation Guarantee.
Other government departments might also conduct audits, such as Payroll Tax which the Office of State Revenue (OSR) would audit and Workers’ Compensation audited by icare.
The abovementioned key areas are particularly censurable due to the complexity and number of transactions made by a company to manage and complete these activities, or you might have overlooked a transaction for your individual tax return. It is here that the ATO is most likely to instigate an investigation and if the ATO, the OSR or icare, does conduct an audit on your tax affairs, then your accountant’s professional fees might add up to be more than you budgeted.
Our goal at YML Group is to provide our services and use our tools to help you prepare for an audit. So to help protect you and/or business from any unplanned professional fees which may arise as a result of an audit, YML Group offers you the opportunity to insure against tax audit costs.
We offer an entirely optional insurance policy which would provide financial relief by covering professional fees (up to a prescribed limit) associated with an audit, enquiry, investigation or review of your tax affairs. You will be covered for audit activity (including past lodgements) that occurs during the period of the cover as per the terms of the policy.
If you think it is a worthwhile business decision to join our insurance policy, we remind you the premium can be tax deductible in most instances. We hope your company and you won’t be subject to an audit, but we believe you will be pleased to be insured against unexpected costs if the time comes that the ATO chooses to investigate you.
For further information about YML Group’s audit insurance policy, please consult us as soon as possible. And for advice on auditing, let us guide you in your specific circumstances.
How can YML help?
Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with audit insurance. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.