Tax Audit Insurance focuses on certain professional costs of responding to an insured audit.

It is not insurance against having to pay tax.

What costs are commonly outside the cover? #

Depending on the policy, exclusions can include:

• Additional tax assessed.
• Interest.
• Fines.
• Penalties.
• Routine tax return preparation.
• Ordinary bookkeeping or accounting work.
• Costs unrelated to the insured audit.

Are known audits covered? #

Generally, an audit or investigation already known before the policy commenced should not be assumed to be covered.

The policy may contain provisions dealing with:

• Prior known circumstances.
• Audits already commenced.
• Previous notifications.
• Events before the policy period.

What about dishonest conduct? #

Policies can restrict cover where the audit arises from:

• Fraud.
• Dishonesty.
• Deliberate tax evasion.
• Intentional non-compliance.

The wording varies between insurers.

Are all government investigations Tax Audits? #

No.

Tax Audit Insurance is not a general regulatory investigation policy.

The authority and investigation need to fall within the policy definition.

Other regulatory matters may instead fall under insurance such as:

• Management Liability.
• Statutory Liability.
• Commercial Legal Expenses.

Can I appoint any adviser and send the insurer the bill? #

Not necessarily.

Policies can require professional fees to be:

• Reasonable.
• Necessary.
• Directly connected to the audit.
• Approved by the insurer where required.

Notify Webber Insurance promptly when an audit notice is received.