The Australian Tax Office (ATO) and other government agencies for several years have gradually tightened their risk profiling system, targeting a wide variety of taxpayers for potential issues. This means that individuals, businesses and self- managed superannuation funds are at increased risk of being selected for an ATO audit.
Each year Morrows sends information regarding Audit Insurance to all our clients. A recent experience reinforced the importance of considering this service.
Late in 2014 the SMSF of one of Morrows’ client’s was audited and our client received a notice for a significant payment due to what was believed by the ATO to be a contravention of the contribution caps. Our client was able to engage Morrows to review their situation, provide advice to them and negotiate with the ATO (for a successful outcome) then claim on their audit insurance to cover the price of that work – removing the potential impact to their cashflow.
The Morrows Audit Protection Service program is offered to you annually to insure you against the cost of professional fees incurred if you or any of your entities are audited by the ATO or another government agency. The cover pays for professional fees incurred to prepare documentation and responses for the ATO and all other government agencies. Underwritten by Suncorp Group Ltd, the policy covers these costs (up to a prescribed limit) for the current year and all previous years’ returns including late lodgement.
The cost of the cover is fully tax deductible so with Morrows Audit Protection in place, you will be free from the worry of fees and we will also handle all paperwork regarding the claim for our own fee.