Audit Management Solutions
The Australian Tax Office (ATO) continues to announce significant increases in their audit activity. Now more than ever individuals, small businesses and Self Managed Superannuation Funds are at risk of being selected for audits. Unfortunately, the instigation of a random audit or investigation by the ATO, or indeed any Federal or State revenue agency, will result in significant costs to the person in question.
Even if there are no adjustments to the return, there would still be costs associated in the preparation of material for the ATO, or the agency involved, and the managing of the response process. It is for this reason that Morrows have taken out Audit Insurance in our own name to cover the professional fees incurred in preparing all relevant documentation and responses to the ATO, or any other Government Agency, conducting an Audit, Review or Investigation. The policy covers these costs (up to a prescribed limit) for any audits, reviews or investigations relating to the current year's returns, and all previous years (if prepared by an Accountant).
This cover does not automatically extend to our clients; however as part of our Audit Management SolutionsTM service we can add client accounts (on payment) to the list of clients participating in this insurance. In the event that a client is subsequently subject to an audit, we will then seek to claim our fees from the insurance company. We emphasise that there is no compulsion, and that it is for each client to decide whether to participate. However, we strongly recommend that all clients consider this offer. We regard this service as a very effective way of planning for the professional fees, for which a client would normally be liable, in the event of an Audit, Review or Investigation. The payment is tax deductible.
Clients who are interested in obtaining Audit Insurance should contact their Morrows representative for further information.