Tax Audit FAQ



 

Do I need insurance?

The Australian Tax Office and other tax authorities such as the State Revenue Offices periodically conduct random audits. This means your number might come up at any time.

When you are audited, the tax office will expect you to prepare and present evidence of your earnings and tax deductions for up to 7 years from the date of lodgement. The costs of pulling this together can run into the thousands, depending on the complexity of your own situation.

By purchasing Guild Tax Audit Insurance, you’re covered for the risk of being out of pocket if the Tax Office come calling.

 

I'm an individual PAYG tax payer. Why would the ATO audit me?

The ATO audits all types of Tax Payers, both small and large. They will often have target themes that draw their focus each year. These might include things such as:

  • Claims for laundering work uniforms and protective wear
  • Rental property deductions
  • Home office expenses
  • Participating in the Gig economy or other online income producing activities
  • Bitcoin and cryptocurrency capital gains

Whether you fall into the scope of the ATO’s focus or not, you can still be selected for an audit at any time. If you have Guild Tax Insurance, you won’t have to foot the bill of your accountant preparing for your audit.

 

How much cover do I need?

Guild Offer you the choice of $10,000, $20,000, $30,000, $40,000 and $50,000. However, the amount of cover you need will vary depending on the complexity of your own tax situation. You may like to discuss this with your accountant to help set an appropriate level of cover.

 

Can I have my own accountant do the preparation work if I do get audited?

Certainly. You must however raise a claim with us, and obtain our written consent to proceed.

 

 

Will the policy cover me for any fines or penalties I incur following an audit?

No. This policy will only cover the cost of professional fees incurred to prepare for the audit. If you subsequently receive a fine or penalty, you will need to pay this yourself.


 

I am an accountant. Can I offer Guild Tax Audit insurance to my clients?

If you're an accountant wanting to make this product available to your clients, please email your details to taxaudit@guildinsurance.com.au, and we’ll contact you to discuss becoming a distributor of Guild Tax Audit insurance.

 

I have a business that consists of multiple tax entities (e.g. Company, Trusts, individuals, etc). Can I get audit insurance for all of them under the one policy?

Yes. When you take out a Guild Tax Audit insurance policy, you can add each related entity that you require cover for. All entities listed on your policy schedule will be covered if they are subject to an audit. When you include multiple entities, you need to ensure the level of cover you take is adequate, as the sum insured shown on your schedule is the most we’ll pay in any one period of insurance, regardless of how many of the insured entities are subject to audit.

 

For full details of cover, Contact Guild on 1800 810 213 to obtain a copy of our policy wording.