The Australian Taxation Office (ATO) and other government agencies continue to announce significant increases in their audit activity.
Now more than ever, individuals, business and self-managed superannuation funds are at risk of being selected for an audit, investigation or review.
The cost of responding to a tax audit or government compliance investigation often becomes a contentious issue between a practice and its clients. The audit process can be time consuming in preparation time and time responding to audit findings and the cost to your client can be substantial.
This can be demonstrated by two claims examples:
- BAS review claim: The client was a retailer with turnover of around $2 million and was asked to provide details substantiating BAS returns for two years. The cost of the investigation and preparation by the accountant was $3400.
- ATO audit claim: The client in this instance was a large orchard business with turnover of around $45 million. It was alleged that the business under declared its income over a three year period. The accountant undertook a full review of the income received by the business and the cost of that review was $15,900.
CPA Australia’s preferred underwriter and broker, QBE Insurance (Australia), and Fenton Green & co offer a comprehensive tax audit insurance product tailored specifically for CPA Australia members.
EasyAudit provides a simple cost effective way to cover your client’s expenses should they face an unexpected ATO, federal, state or territory government audit, compliance investigations and enquiries.
Key points to consider:
- extending the cover to your clients may provide your practice with the opportunity to gain an additional income
- increase your ability to provide a highly valued, innovative service offering to your clients
- claims are paid directly to the practice – nil excess applies
- practices are able to access appropriate professional expertise and sufficient resources to adequately respond to the audit in the interests of your client
- the practice manages the cover through an in-house software program.
Terms and conditions
The products and services are underwritten and issued by QBE Insurance (Australia) Limited ABN 78 003 191 (AFSL 239545) (QBE) through its broker, Fenton Green Insurance Services Pty Ltd (Fenton Green). CPA Australia is solely a mere referrer of the products and services. CPA Australia makes no warranty as to the accuracy or completeness of any information contained on this webpage and/or fact sheet, nor does CPA Australia accept responsibility for any acts or omissions in reliance upon any such information. Before acting on such information, consider the appropriateness of the products and services that are promoted having regard to your objectives, financial situation and needs. Independent professional advice should be sought with respect to the product(s) and service(s) and any information referred to on the webpage and/or fact sheet. To the extent permitted by applicable law, CPA Australia, its employees, agents and consultants exclude all liability for any loss or damage claims and expenses including but not limited to legal costs, indirect special or consequential loss or damage (including but not limited to, negligence) arising out of or related to: (a) information contained on the Landing Pages; (b) Third Party Information; and/or (c) the products and services offered by any Partner. As a 'mere referrer', CPA Australia may receive revenue from QBE.