26 Oct 2011
bookkeeping news

Audit Shield Service

What are random Tax and Government audits?

Audits, reviews and investigations are conducted by the Australian Tax Office (ATO) and other state and federal government agencies to ensure business and tax payer compliance with various tax and legislative requirements such as Income, Land and Payroll Tax, GST, FBT, Record Keeping, Workers Compensation, Employer Obligations, Superannuation Guarantee and Self Managed Superannuation Fund Compliance amongst others.

How likely am I to get a random audit, review or investigation? 

The ATO, along with other federal and state agencies continue to announce significant increases in their audit activity. Now more than ever, Individuals, Businesses and Self Managed Superannuation Funds are at risk of being selected for a random audit or review.

What are the costs to businesses and tax payers in the event of a random audit, review or investigation?

If your business or individual return is subjected to a random audit, review or investigation, you are responsible for the costs (professional fees) involved in providing the required information. Even the simplest enquiry can require hours of work. In multiple years or multiple companies and trusts, thousands of dollars in accounting and legal fees can be incurred. The cost of being properly represented in these matters can be quite considerable depending on the length of time involved.

How can I protect myself from the costs of random audits, reviews and investigations?

We can offer you an Audit Shield Service which can provide you with comprehensive relief from these costs (fees).

The Audit Shield Service provides for the payment of the professional fees incurred as a result of you being selected for an audit, review or investigation by the ATO or other Government body.  The Audit Shield Service provides a fixed, cost effective solution to guard against these unbudgeted costs.

What Costs are covered?

The service covers all professional fees up to a prescribed limit (with no excess) when responding to, or representing you in an audit, review or investigation. These include not only our fees, but also legal fees, bookkeeping fees and specialist professional advisor fees (e.g. quantity surveyors, valuers, and actuaries).

Who is covered?

All of our clients can take advantage of the Audit Shield Service. Different levels of cover are available for:

•  salary and wage earners;

•  businesses or business groups;

•  Self Managed Superannuation Funds;

What do I need to do to take up the Audit Shield Service?  

Please contact  Preda Pty Ltd on 03 8663 51 00 and we will send you an information pack including an acceptance form/invoice.