When a tax collector finds their way to your business, you’ll try to hide from them. Even if you know you’re doing everything properly for your business and have all the needed records for the review, a tax audit from ATO can still leave you with hefty expenses. Why you may ask? ATO may need you to provide all the information they may ask about your business. You may need help from a tax accountant which can really be costly. To make things simpler, you may need an audit insurance for back up.
Technically, you may need a complete audit insurance that shoulders the professional fees you need to pay as the outcome of a financial audit, investigation, inquiry or review by the ATO or some other accredited federal, state or territory bodies.
The Tax Commissioner has antecedently forecasted that around 15% of small- to medium-businesses will have to abide with the ATO compliance programme including tax audits. This is the reason why many of these businesses resort to audit insurance in preparation for being billed with thousands of dollars.
A tax audit may review if your business is corresponding to the requirements like taxes for land, income and payroll; BAS/GST compliance; workers compensation; superannuation needs; record keeping; and, other documents requested by the accredited bodies.
These documents will need more time to prepare and will definitely include more money to spend. The money spent here is not what you have expected and will set aside. And you’ll find it hard to estimate for how long the tax audit will take or what it will ask for. To ensure that you have everything you need, it may be worthwhile to be covered with audit insurance and avail possible packages that truly suits your needs.
So, if you want peace of mind and relieve you from the stress that ATO tax audits can do, the audit insurance should payout the extras. You never know when ATO can ask for audit on your business and you need to be really prepared. If you need help to know more about this insurance coverage, contact reliable and reputed insurance providers.