Filing tax returns and submitting the relevant documents to the tax department are major functions of an accountant. Any discrepancies in the tax statements will result in an enquiry from the department for your client and yourself.
Taking protection cover for insurance against tax investigation will help as a safeguard against the fees and the huge costs involved in tax investigation. The tax department can call any assesee for an enquiry even if they are accurate and without errors. The fee of such tax investigations can run into thousands of dollars. A proper cover will protect your company from these huge costs.
However, an insurance against tax investigation policy does not cover the costs of routine tax filing and processing. It is also not applicable for the investigation of the cases of fraud and criminal prosecution. The policy also does not cover any interest payments or fines due to fraud.
The policy offers protection against the costs involved in dealing with the audit conducted by ATO or any other government revenue agency. The policy covers matters relating to income tax, land tax and payroll tax, compliance matters related to BAS or GST, workers compensation issues, record keeping and FBT.
The one time annual fee cover for insurance against tax investigation protects the policyholders from the huge legal and other expenses that arise out of a tax audit or investigation. It helps the companies, individuals and superannuation funds to cover the fees of the lawyers, accountants and advisors who help in dealing with the audit. It also covers other expenses of tax audit.
Accountants can benefit a lot by opting for insurance against tax investigation policy for their clients. They can make some money and offer good protection for their clients, in the unforeseen circumstance of a tax enquiry. The cover required under the policy depends on the size of the business and the turnover of the company. Taking adequate cover will help the company to tide out of the time and money consuming tax investigation without any extra charges. The policy will take care of all the expenses related to the investigation and audit.