Learn more about your coverage with AuditCover below
Who is AuditCover?
AuditCover is an insurtech solution for tax audit insurance and risk mitigation. We protect accountants and their clients from footing the bill for professional fees when responding to a tax investigation.
Who can get cover?
Tax audit insurance can be taken out by salary earners, sole traders, companies, directors, and/or SMSFs.
What is tax audit insurance?
AuditCover provides for payment of professional fees otherwise payable by you when incurred as a result of being required to respond, on your behalf, to a tax investigation instigated by the Australian Taxation Office (ATO) or other Government revenue agencies.
What is the benefit of an AuditCover policy?
Data matching becomes more sophisticated each year. This makes it simpler and far more likely for previously untargeted taxpayers to encounter tax audit activity, even if they are fully compliant. AuditCover means you can rest assured knowing that professional fees will be covered, and the accounting and taxation work will be undertaken, in relation to the tax investigation.
What is included under an AuditCover policy?
Professional fees that have been incurred in responding to tax audit activity until the completion of the matter, or until the cover limit as stated on your insurance policy is exhausted, will be covered under the AuditCover policy. Fees of any other external specialist (e.g. tax lawyers) or relevant consultant engaged or instructed by your accountant to assist in a response to the tax investigation are also covered, broadly defined as professional fees. Your cover begins from the day you make payment to bind the cover.
What is not included under the AuditCover policy?
Penalties and shortfall in tax are not covered. Any fees sustained that are not directly related to responding to the tax investigation, and fees that exceed the insured limit are not covered. We recommend that you review your policy documents as a means to achieve a full understanding of all the inclusions and exclusions.
What stages of tax investigation are covered?
There is no excess on the policy. Once you are an AuditCover policyholder, previous lodgements are also covered. The tax investigation must be instigated during the period of cover but can include responding to audits of returns that your Accountant or financial professional adviser did not prepare. Under the AuditCover policy, a tax audit means any official inquiry, investigation, examination, or review undertaken by an authority in respect of your liability to pay any designated tax (including the amount of tax payable) following lodgement of a return for that designated tax.
What designated taxes are covered?
Income Tax Assessment Act 1936 (Cth)
Income Tax Assessment Act 1997 (Cth)
Fringe Benefits Tax Assessment Act 1986 (Cth)
Fringe Benefits Act 1986 (Cth)
A New Tax System (Goods and Services Tax) Act 1999 (Cth)
Superannuation Guarantee (Administration) Act 1992 (Cth)
Or any law of an Australian State or Territory relating to payroll tax
What about historical tax investigations?
This review drills down to the very understanding of claims-made & occurrence-based insurance policies.