Taxpayers recently got a rude awakening at the hands of the federal government. Despite complaints of “heavy-handed and unfair treatment” by the Australian Taxation Office, the government announced that it saw no need to roll back the ATO’s authority to initiate proactive investigations.
Highlights of the recent announcement
- Formal recommendations were made to restrain the department’s powers to target people and organisations with invasive audits without any proof of wrongdoing. However, the recommendations were to no avail.
- The government also rejected formal requests to separate the ATO’s compliance from its appeals section – meaning that the same people who pronounce a verdict on tax compliance could also be the ones handling a potential appeal of that verdict.
- The likelihood that individual taxpayers and businesses around the country could experience drawn-out investigations. The end result of a detailed audit will normally yield a fair resolution of the issue although the time, effort and expense of getting to that point can be enormously inconvenient.
How can you protect yourself and your clients?
Tax audit insurance is the most simple and effective way to ensure you accounting firm’s clients are protected against the potentially costly ramifications of ATO instigated activity.
Audit Shield is a tax investigation insurance that is provided by Accountancy Insurance which protects individuals, businesses and Self Managed Superannuation Funds by insuring them against the cost of paying accountants and experts in the event that they are called upon by the government to prepare for official audits, enquiries, investigations and reviews. The protection is provided by you – the accountant – who must take out the cover with Accountancy Insurance and then offer the service to clients.
Contact the Accountancy Insurance team to discover how Audit Shield can protect your accounting firm and your clients. Email info@accountancyinsurance.com.au or call 1300 650 758 today.
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