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Does Tax Audit Insurance cover ATO and state revenue audits?
AI Doc Summarizer Doc Summary

Tax Audit Insurance can apply to audits or reviews conducted by more than one government authority.

The authorities covered depend on the policy wording.

Can ATO audits be covered? #

Yes.

Tax Audit Insurance commonly includes specified audits or reviews conducted by the Australian Taxation Office.

Depending on the policy, this can relate to matters such as:

  • Income tax.
  • GST.
  • Business Activity Statements.
  • Fringe Benefits Tax.
  • PAYG obligations.
  • Superannuation-related matters.

Not every enquiry from the ATO necessarily meets the policy definition of an insured audit.

What about state or territory revenue authorities? #

Some policies can also extend to specified audits involving state or territory taxes.

These can include matters such as:

  • Payroll Tax.
  • Land Tax.
  • Stamp Duty or Duties.

The relevant authority and tax must fall within the policy wording.

Does every government investigation qualify? #

No.

Tax Audit Insurance is not general regulatory investigation insurance.

An investigation by another regulator may instead involve cover under policies such as:

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

Why should the audit notice be provided to Webber Insurance? #

The actual correspondence helps identify:

  • Which authority is involved.
  • What tax is being reviewed.
  • Whether the matter meets the policy definition.
  • When the audit commenced.

Send the notice to Webber Insurance promptly rather than waiting until professional costs have accumulated.

General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.