Why You Should Really Consider A Tax Audit Insurance

You may have heard about people using tax audit insurance such as Audit Shield as a protection in case of a tax audit. You may think that it is unnecessary since there is a very minimal chance of your business being audited but you may also be wrong. It is important to have a tax agent because of the many benefits including:

  • An agent is there to help prepare and file your tax return
  • Someone to help you keep your tax return record which the ATO mandates to be kept for a minimum of 5 years.
  • The agent can explain to you the entire Income Tax Act.
  • The agent can explain all the relevant tax legislations you need to know such as the international tax laws governing trades with foreign companies.
  • Someone will keep a record of all your tax receipts as well as important documents in a safe place.
  • Taxpayers will be able to make use of the extension deadlines if represented by a tax agent.

All the taxpayer needs to do is to make sure all their tax return information is conveyed to the tax agent or the ATO, total income must be disclosed and expenses should have supporting documents, provide proof that a loan will be utilized for assets that are generating an income and you should work with the tax agent to make sure everything is declared and signed as mandated by the Tax Act.

Having tax insurance such as Audit Shield will cover different official audits conducted by the government such as record keeping, income, land and payroll tax, FBT, BAS/GST compliance, self managed superannuation funds, workers compensation or workcover and superannuation guarantee and compliance. If you have tax audit insurance, you can claim all the professional service fees you have paid during the assessment or auditing conducted by the ATO as well as the any state-based authority that conducts reviews and audits. This is why every tax agent recommends that tax payers should have an insurance that will cover them in case unexpected audits are made with their transactions.

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