Regardless if your business venture is just starting out or your company is already established, you are not still excused of being subjected to tax audit investigation especially if the concerned government agencies see reasons to check on your returns and accounts. However, being subjected to tax audit enquiry doesn’t necessarily mean that your documents are questionable. The government conducts random checking on corporate and personal accounts to ensure that everyone complies with the government’s tax requirements. If you follow the law down to the last letter, there is nothing to worry about. But then again, even if your records are clean, you would still have to shoulder the professional expenses accrued during the process. This is where tax investigation insurance could save the day.
Tax investigation usually takes several hours to days and the entire proceedings could cost thousands of dollars to the company or individual being investigated upon. If you are not ready financially, this could take a heavy toll on your savings and may even compel you to file a loan from the bank. To do away with all the worry, talk to a representative from a tax investigation insurance on how you can be assisted with. Some of the reasons why you should take insurance for tax investigation include the following:
- Tax investigation insurance covers professional fees to accountants, auditors, solicitors and other government authorities incurred during review and audit of lodged returns. This also covers transportation and accommodation expenses if the officials need to travel due to the investigation.
- Another advantage is that you can avoid professional fee disputes with accountants and government officials since the insurance agency will handle all the payment.
- Payments to concerned individuals are fast and prompt so you get peace of mind along the process.
- With tax investigation insurance, government officials or those who need to be paid with professional fees get exact payment.
As a reminder, tax audit investigation must be instigated within the cover period so for clients to claim the insurance coverage. Otherwise, the insurance policy cannot be claimed.