Sorting out your tax audit insurance

You know what they say about death and taxes… Well, if you are reading this, you’re not dead and it’s that time of year again. But what could make doing your taxes even worse is a tax audit on your business accounts.

Being investigated by the ATO can be a stressful and time-consuming event, and tradie businesses are not immune.A tax audit can come out of nowhere and you may need to hire external professionals like an accountant or bookkeeper to help you with the process.

It can take a while for these accountants to prepare all the information for the ATO and, depending on the scale and severity of the audit, the cost could potentially run into the thousands.

This is where Tax Audit Insurance comes in, as it covers a business for specified costs in responding to an official tax audit by the ATO or state tax authority.

Tax Audit cover is usually a section within a Business Insurance (BizPack) policy – an insurance package designed to provide cover for your business contents, stock, tools, and commercial premises when an insured event occurs (such as fire, storm, theft, or even accidental damage). However, it can also sometimes be purchased individually under a BizPack.

The policy offers coverage for the costs of accountants and other external fees incurred through an audit notified to the insured during the period of cover.

Running a small tradie business is stressful at the best of times let alone when you have the drama of the ATO breathing down your neck. Luckily, with BizCover your Tax Audit insurance doesn’t have to be!

Jump online and visit bizcover.com.au or give us a call today to explore policies that are available to you.With multiple competitive quotes to choose from online, you could get it done over smoko.

*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice.As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved.