Tax Audit Insurance (API)
		Ensure peace of mind knowing that unexpected professional fees associated with a Tax Audit are covered.

Case Studies: 

•    An electrical contractor incurred expenses of over $1,000 as a result of an audit on record-keeping
  
•    A motor vehicle sales business incurred over $1,000 as a result of a Prescribed Payment and
     Group Tax audit
  
•    A manufacturer faced a bill of over $45,000 after an audit on Fringe Benefits Tax for the current and
     preceding year. The audit was extended to cover the preceding two years
  
•    A motel business needed $19,600 to cover professional fees incurred as a result of an audit on
     income tax for the current plus two preceding years
  
•    Professional fees of $9,680 were incurred by a property group when the ATO investigated three years
     of Capital Gains Tax
  
•    A Workers’ Compensation audit by Work Cover cost the company investigated $4,780 in fees
  
•    A company incurred $4,670 in professional advice sought when the NSW Government inspected three
     years of payroll records
  
•    In a Super Fund audit, APRA scrutinised three funds – and cost the two companies involved $13,445
     in professional fees
     

The probability of a taxpayer being selected for a tax audit has never been higher.

Headlines In Recent Publications:

"Tax tactics: ATO applies blowtorch"	Business Review Weekly	Thu April 24 2002
"No Christmas Cheer For Tax Cheats"	NTAA Media Release	Thu December 12 2002
"Superannuation" Tax Office gets tough"	Business Review Weekly	Thu May 29 2003
"Are you a tax target? Who the ATO is chasing this year"	Westpac Online N/letter	Wed June 11 2003
"ATO Audit Focus On Individuals"	NTAA Media Release	Thu June 19 2003
"Wok-related expenses and rental properties to be closely scrutinized"	ATO Media Release	Mon June 29 2003
"Businesses under ATO 'high-risk' microscope"	Western Magazine	Mon July 28 2003
"Business faces tax audit blitz"	Australian Financial Review	July 2003
"Insolvencies rise as tax audits bite"	Australian Financial Review	Mon August 18 2003
"Tax Office reveals new hit list"	Australian Financial Review	Tue August 19 2003
"The taxman sets his sights on DIY funds"	Sun Herald	Sun August 24 2003
"Agents and advisers in the spotlight"	Australian Financial Review	Tue August 19 2003

 

 Do you live beyond "the Black Stump" and think you are too remote to be selected for an Audit?

The ATO has extensive data-matching and cross-referencing capabilities across financial institutions and
Government agencies to ensure taxpayers declare all interest and dividend income, including any earned
overseas.  They can also determine trends and compare your income and expenses to those of your
peers. Variations and discrepancies will be highlighted and reported automatically - and investigated. 
Your geographic location will not deter an investigation.

According to the recently-issued “Compliance Program 2003-2004”, the ATO plans to: 

•    Contact over 85,000 businesses in order to investigate undeclared income
•    Visit around 20,000 businesses with one of 600 specially-trained officers experienced in detecting
     omitted income and identifying businesses that operate outside the tax system
•    Use its 2400 officers to identify cash economy issues as part of their compliance reviews
•    Perform an audit of 1 in 10 small businesses on GST and Income Tax primarily, but also on PAYG,
     Fringe Benefits Tax and Super contributions
•    Focus on inconsistencies between Business Activity Statements (BAS) and income tax returns