Tax Audit Insurance

Tax Audit Insurance – What is it?

This is Insurance that covers your professional accounting fees should you be audited by the Australian Taxation Office (ATO) or any other Australian (Federal, State or Territory) government agency which has the statutory responsibility to conduct audits in relation to taxation, duties, levies or other such statutory imposts in connection with a Business.

Any client, individual or entity, can be the subject of an audit. Tax audits can be expensive and are on the increase.

What are random tax and government audits?
Audits, reviews and investigations are conducted by the Australian Tax Office (ATO) and other state and federal government agencies to ensure business and tax payer compliance with various tax and legislative requirements such as Income, Land and Payroll Tax, GST, Workers Compensation, Superannuation Guarantee, Compliance research, Development Grants and more.

How likely am I to get a random audit, review or investigation?
The ATO and other federal and state agencies, continue to announce they are increasing their audit activity. Increasingly, Individuals, Businesses and Self Managed Superannuation Funds are at risk of a random audit or review.

The ATO also publishes a compliance program annually. The segments they target are individuals - micro businesses (annual turnover under $2 million) and small to medium enterprises (annual turnover of over $2 million). The ATO continually increases its data collection or detection scope (including property and share transactions) under its data matching program that in 2007 - 08 accessed 78 million taxpayer income records. Benchmarking and risk profiling average business income and expenses is another ATO compliance detection tool. Statistically, a client can expect to be audited at least once every four years.

What are the costs to busineses and tax payers in the event of a random audit, review or investigation?
If your business or individual return is subjected to a random audit, review or investigation, you are responsible for the costs involved in providing the required information. Even the simplest enquiry can require hours of work. In multiple years or multiple companies and trusts, thousands of dollars in accounting and legal fees can be incurred.

What audits, reviews and investigations are covered?

  • Income Tax
  • GST & BAS
  • Superannuation Guarantee
  • PAYG Withholding
  • Fringe Benefits Tax
  • Payroll Tax
  • Land Tax
  • Stamp Duty
  • Work Cover
  • Self Managed Superannuation Funds
  • And many other lodged returns

What is not covered?

  • audits conducted by APRA
  • incidental, routine enquiries
  • audits where notification was received prior to the cover being taken up
  • fraudulent, reckless, dishonest, criminal or malicious act or omission
  • false or misleading statements attributed to deliberate evasion, recklessness or carelessness unless the client could not reasonably be expected to know the status of the statement
  • criminal prosecution of the client
  • a client's activities where the collective turnover in the latest financial year is greater than $50 million


Who is covered?
Different levels of cover are available for:

  • Salary and wage earners;
  • Businesses or business groups with turnover under $100 million;
  • Self managed superannuation funds;

In many cases, individuals and family entities can be covered by the same policy that covers the business entity – for no extra cost.

Who can help?

An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one.

Call CPR –Experts who will save you

  

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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