Shield yourself from an Audit – Get Audit Insurance
Posted on 02 Feb 2024
Audit insurance is a type of insurance that provides coverage for the costs associated with being audited by the Inland Revenue (IR). Recently the IR have been increasing the number of enquiries, investigations, and reviews (audit activity) on lodged returns. Anyone can be targeted, even if your lodgements are accurate.
What are the benefits of Audit Insurance:
Audit insurance provides crucial financial protection by covering the costs associated with audits, shielding individuals and businesses from unexpected and potentially significant expenses. It covers the cost of all eligible audits, enquiries, investigations, and review of your businesses lodged tax returns, irrespective of which year they were lodged, are included.
Audit insurance also covers the professional fees (up to the prescribed limit) incurred because of audit activity instigated by IR, including tax experts, lawyers or other specialists that are engaged or instructed by us to assist in a response to audit activity.
What IR activity does audit insurance cover?
- Dividend Withholding Tax
- Employer Returns
- Fringe Benefit Tax
- GST
- Imputation Credit Account
- Income Tax
- Non-Resident Withholding Tax
- PAYE
- Record Keeping
- Resident Withholding Tax
Is Audit Insurance Tax deductible
Yes, payment is tax deductible if you are in business or self-employed.
Why should you consider Audit insurance?
IR along with other government authorities have unprecedented access to taxpayer records, allowing them to specifically target previously unreviewed tax returns. Now more than ever you could be at risk of an IR audit activity.
Be proactive and prepared. Once an audit is requested by IR and you are not covered by insurance, it is already too late and any refunds to you could be held up by IR until the audit is completed.
Contact us and we’ll get you covered
