How an Audit Insurance Can Aid You During Mandatory Tax Audits

In many cases, the Australian Taxation Office will accept your tax returns as filed. However, through their website, you’ll find that the computerised screening at random will be used for requesting a tax audit. Just because you received a notice for audit, you have erroneously or dishonestly filed your tax returns. To ensure you’re really protected from further investigation or review, you need an audit insurance from a reliable and reputed insurance company.

If you receive a notice for tax audit, you have every right for a defence. Once you receive the audit notice, you need to keep it in a safe place, so you can find it easily. It does make good sense if you keep detailed information about your tax returns like business records, deductible expenses, banking records, and anything relevant to your tax return. Depending on the audit, you need to keep records for a considerable amount of time.

The very first precaution you must take is never to file your tax returns by yourself unless you are familiar with the tax codes. Many Australian taxpayers just don’t know how to live life, operate a business and learn about new tax laws and codes each year. Using franchised software programs may be dangerous to use if you don’t know about any tax codes. You may be prone to identity theft or may lead you to questioning about the tax audit.

The tax code is mind-boggling and complicated. If you receive a tax audit notice, you don’t have to panic. You need to engage yourself in a tax audit insurance to defend you during the audit before taking any action. This insurance will provide you protection from all the questions ATO will need to know about your tax issues. If you seek no help, then you may be ending up making criminal penalties, which will need trials for the actions. This will include tax evasion, wilful failure to file a tax return, supply information, pay any tax dues, and prepare or filing fraudulent returns.

Find a credible and reputed audit insurance company and you’ll be safe. Paying taxes is serious and it’s better to be safe than sorry.