Accountants can protect their clients and themselves by utilising the cover protection against tax investigation. This attractive insurance cover will offer cost protection in the event of a tax enquiry from the ATO or any other revenue collection department of the Government.
The popular and widely used tax investigation insurance protects the accountants and their clients from the expensive and time-consuming tax audit enquiry. Any individual or company who pays tax can be subjected to tax audit by the ATO, even when the accounts are error free and accurate. The process of dealing with the enquiry is long and requires the services of professionals, like experienced taxation accountants, lawyers and advisors. The popular insurance against tax investigation policy will help your clients to cover the costs of the fees of all these professionals and any other additional expenditure for facing the tax audit.
The process of obtaining this popular tax investigation insurance is simple. The accountants can get in touch with the company providing the policy and speak to the customer relation executives. Once they are satisfied with the terms and protection offered by the policy, they can sign up for it and recommend the policy to their clients as part of the value added services.
The accountant need not incur any upfront cost for participating in the policy. The accountant just needs to complete the registration process and sign up for participation. The clients pay a premium to get the tax insurance for their firms and themselves. The accountant will pay for the policy after he receives payment from the client, which creates a positive cash flow for him.
The coverage offered by tax investigation insurance policy is very broad. It covers all the expenses of tax audit, investigations and enquiries related to tax compliance and reviews by ATO or any other Government body in relation to tax returns. The policy protects the accountants and clients for the applicable previous year’s returns and also all the previous returns of the uncovered period.
The premium of the tax investigation insurance policy is calculated depending on the nature and size of the business. Accountants should be careful to offer the right amount of cover to their clients for maximum protection.