The 2013-14 Federal Budget details an allocation of $145.7M to ATO to enable an increase in resources to improve taxpayers’ compliance. Individuals and businesses are being advised they may be randomly selected by the ATO for benchmark audits. Whilst preparation and fool proof business processes should be the focus, consideration also needs to be given to possible insurance coverage such as:
Tax Audit Insurance – assists with the payment of your accounting fees
Management Liability Insurance – aside from providing cover for liabilities of the company or organisation, it can also include Directors and Officer Liabilities, Employment Practice Liabilities and extends to tax investigations.