You may be at risk of huge ATO costs

Dawn Macaluso
May 15, 2019
Business
3
minute read
Costs relating to the Australian Taxation Office’s (ATO) compliance initiatives continues to increase.

In fact, in the FY2017 the ATO raised $15.6 billion (a 13% annual increase). To combat the costs of unplanned professional fees which can arise as a result of initiatives instigated by the ATO and other relevant government revenue agencies, we encourage all of our clients (and you) to take out Audit Shield Insurance.

How much could an audit cost?

You are responsible for the costs (professional fees) if your individual, business or SMSF return is subject to an ATO audit. If you do become subject to an audit, even simple queries can require hours or work, a full audit review could cost into the thousands of dollars.

What is the Audit Shield service?

The 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 (audit activity) by the Australian Taxation Office (ATO) or other relevant government revenue agency. The cost of being properly represented in these matters can be quite considerable depending on the length of time involved. Our Audit Shield service provides a fixed, cost-effective solution to guard against these unbudgeted costs.

What is covered?

  • Income Tax
  • Payroll Tax
  • PAYG Withholding
  • Stamp Duty
  • WorkCover
  • Superannuation Guarantee
  • GST and BAS
  • Land Tax
  • Fringe Benefits Tax
  • Self Managed Superannuation Funds
  • Plus much more

What costs are covered?

Audit insurance covers the professional fees of your accounting and tax agent up to a prescribed limit when they represent you in an audit. The cover can also include the cost of legal fees, bookkeeping, and any specialist advisers you may need to engage (such as values and/or quality surveyors).

How likely am I to be selected for audit activity?
The ATO, along with other federal and state agencies have unprecedented access to taxpayer records, allowing them to specifically target previously unreviewed tax returns. Now more than ever you could be at risk of audit activity.

Interested in learning more?

If you have questions about our Audit Shield service get in touch, we’re happy to answer all of your questions. Please call 9217 2400 or email us at admin@mvpfinancial.com.au, alternatively, click on the link below.

Get in touch – Contact us

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Article by
Dawn Macaluso
As Group General Manager, Dawn’s primary responsibility is to support the Directors in the performance management and profitability objectives of the business.
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