The recent announcement of the 2013-2014 Budget has confirmed that tax audit activity will most certainly increase within the Australian economy. With the provision of $67.9 million over four years, the Australian Taxation Office (ATO) will undertake rigorous audits to Australian taxpayers which will increase tax receipts by an expected $432 million over the designated period.
In an effort to promote better tax compliance, the ATO will be provided with additional resources to expand data matching with third party information. Inevitably, this will affect all Australian businesses and individuals alike.
At Accountancy Insurance, we are well aware of the presently high volume of tax audit activity. In 2013 alone we responded to claims which increased nearly 20% when comparing this year to the same period last year. Inevitably with the additional provisions to the ATO, audit activity is sure to keep increasing.
Not only have we noted an increase in the number of claims in the last six months, which equates to an increase in the volume of tax audit activity, but also the average value of those claims has risen by 39%. This suggests the ATO is digging deeper and wider as well as more often into the business operations of Australian firms.
Our clients have also identified the growth in claims recently and thus the need for tax audit insurance. Director of William Buck (Sydney), Graham Spring, said of Audit Shield “We have found the claims process to be seamless and easy to manage under the Audit Shield policy. We were not surprised with the number of claims made which include a lot of BAS Statements although when we had a claim that went to the claims review panel; they asked a few questions and approved the claim to be paid. It was a very easy process.”
Now, more than ever, it is essential to be protected against the threat of an audit. Accountancy Insurance’s Audit Shield will be able to provide your firm with this protection. Under the Audit Shield policy, an audit is broadly defined to include any official enquiry, review, investigation or audit, in respect of your client’s returns or financial compliance obligations, and which they are obliged to respond to, or act on.
Since 2003, Accountancy Insurance’s Audit Shield have been providing this protection to over 1700 accounting firms in Australia and New Zealand and are Australasia’s leader in Tax Audit Insurance.
For more information on Audit Shield, please call Accountancy Insurance on 1300 650 758 or visit the website at www.accountancyinsurance.com.au.
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