The main purpose of Tax Audit Insurance is to cover certain professional costs incurred when responding to an eligible audit.

Whose fees can be covered? #

Depending on the policy, eligible professionals can include:

• Accountants.
• Registered tax agents.
• Lawyers.
• Bookkeepers.
• Specialist tax advisers.
• Other approved professional advisers.

What work can the fees relate to? #

Examples can include:

• Reviewing financial records.
• Preparing supporting documents.
• Reconciling transactions.
• Responding to information requests.
• Preparing submissions.
• Attending meetings.
• Corresponding with the auditor.
• Representing the business during the audit.

Are ordinary accounting fees covered? #

Generally not.

Tax Audit Insurance is not intended to pay for normal business expenses such as:

• Routine bookkeeping.
• Preparing annual accounts.
• Preparing ordinary tax returns.
• BAS preparation.
• Ongoing accounting services.

The professional cost needs to relate to the insured audit.

Can legal fees be covered? #

Potentially.

Where legal advice is reasonably required in connection with an insured audit, the policy may cover specified legal professional fees.

Insurer approval may be required.

Can I choose my existing accountant? #

Often the business can continue using its existing accountant or tax adviser, but the policy may require:

• Insurer consent.
• Reasonable hourly rates.
• Costs to relate directly to the audit.

Check with Webber Insurance before committing to substantial professional fees.