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.