Tax Audit cover can be included as a section of some Management Liability policies.

It is not automatically included in every Management Liability policy and should be checked on the schedule and wording.

What can the section cover? #

Depending on the policy, Tax Audit cover can assist with certain approved professional fees incurred when responding to an eligible audit, review or investigation.

These costs can include fees charged by:

• Accountants.
• Tax advisers.
• Lawyers.
• Other approved professionals.

What authorities can be included? #

This varies between policies.

Cover can potentially apply to matters involving:

• Australian Taxation Office.
• State or Territory revenue authorities.
• Other specified government bodies.

What is generally not covered? #

Depending on the wording, exclusions or limitations can include:

• Additional tax assessed.
• Interest.
• Fines or penalties.
• Routine accounting work.
• Tax return preparation.
• Known audits or investigations.
• Fraudulent or dishonest conduct.
• Costs incurred without insurer approval where approval is required.

Is standalone Tax Audit Insurance different? #

Potentially.

Tax Audit Insurance can be available:

• Within Management Liability.
• As standalone insurance.
• Through some broader Business Insurance arrangements.

The available limit and scope should be compared rather than assuming the Management Liability section provides the same protection as a standalone policy.

Where can I read more? #

Our dedicated Tax Audit Insurance articles explain the cover, authorities, professional fees, claims process and quote requirements in more detail.

If you receive an audit or investigation notice, notify Webber Insurance promptly and avoid incurring significant professional costs without checking the policy requirements.