ATO Audits – what you need to know

FCI Smiling man Image 0715-1Small business owners are renowned for their resilience and indomitable approach; however a letter from the Australian Taxation Office (ATO) can still be an alarming experience. 

SPONSORED CONTENT


FCI Smiling man Image 0715-1

Small business owners are renowned for their resilience and indomitable approach; however a letter from the Australian Taxation Office (ATO) can still be an alarming experience. 

This concern  is understandable. In the past, the ATO has been uncompromising in its dealings with small businesses that did not meet their obligations. Today, the ATO is more willing to assist and support SME businesses that are making an effort to comply.

However, while times have changed, the tax audit hasn’t disappeared. Indeed, the move to self-assessment has progressively seen the introduction of a heavily expanded audit program to manage compliance. There is now a broad range of factors that can trigger an ATO audit.

Yet, audits can be directed at businesses with no case to answer. 

Typically, SME businesses ask their accountant or bookkeeper to respond to an audit on their behalf; there is usually a fee associated with responding - irrespective of the ATO’s findings. It ends up costing SMEs time and money.

Fortunately there is insurance for this risk: Tax Audit Insurance. There are three different types of tax audit insurance...but read the fine print. 

1) Accounting based policies: these policies are broad but expensive. Held by the accountant, not by you, they normally cover only fees charged by that accountant; they may not cover other fees, such as book-keeping.

2) Business Pack insurance: tax audit extensions are included in some Business Packs but are very limited, covering only a small range of audits, often with exclusions.

3) Tax Audit Insurance direct: far cheaper than comparable policies, this insurance extends to ATO, federal and state agencies; as well as tax, it covers workers compensation, payroll tax, SMSF and other reviews that can be prohibitively expensive.  

First Class Insurance - Logo - High Res-01 0715

 

You can protect your business with Tax Audit Insurance via First Class Insurance, your bookkeeper or apply online at www.firstclassinsurance.com.au 

This information is general in nature and is not intended to provide advice. 

First Class Insurance Pty Ltd ABN 94 602 193 046 (CAR 473091). Corporate Authorised Representative of Westcourt General Insurance Brokers Pty Ltd (AFSL 238477) ABN 81 009 401 772.

 

 

Like My Business on Facebook now to get involved in the SME community discussion. 
Follow @mybusinessau on Twitter for breaking stories throughout the day. 

Subscribe to the print version of My Business now.

promoted stories