Welcome to the transparency and simplicity of Audit Cover.
What is Audit Cover?
Insurance cover to reimburse professional fees incurred to assist your 'clients' exposed to:
- an audit undertaken on previously lodged returns, or
- a compliance audit,
by a government agency that administers taxes, duties, superannuation or workers compensation (also includes workers compensation in various Territories & States is placed with private insurers).
'Clients' include Individuals, Trusts, Self Managed Super Funds ('SMSF'), Self Employed, Operating Entities and the like. The majority of 'clients' tend to be 'client groups' including the Operating Entity(ies), the owners/directors, any trusts or SMSF, etc.
Where a 'client' is purely seeking to cover an SMSF, please visit www.superfundcover.com.au.
What’s different about Audit Cover?
We are aware of various audit or tax insurance products available. We’ll openly advise interested parties of the differences.
What sets Audit Cover apart from the others is:
- Monthly client declarations.
- Unquestionably, the widest scope of cover available.
- Competitive premiums.
- Simplified administration process; no software applications; limited paperwork & staff involvement.
- Greater client privacy.
… and all supported by executives involved in audit insurance since 1987!
So, what does Audit Cover include?
Your firm is reimbursed for professional fees incurred when clients are exposed to an 'audit' undertaken by a 'government agency'. 'Audit' includes a random examination, inquiry, investigation, questioning, review or audit of (a) your client's activities and (b) any returns/declarations previously lodged by your client.
'Government agency' refers to those agencies overseeing taxes, duties, superannuation and workers compensation premiums.
… and exclude?
- Known circumstances.
- Returns lodged outside Australia# or more than three (3) months outside a prescribed lodgement date.
- Where a client fails to be compliant with a relevant government agency.
- Where a client volunteers new or revised information on a previously lodged return and an audit ensures.
- Where a client has acted dishonestly or fraudulently; has been assessed as having acted recklessly; or where criminal activity or prosecution is involved.
- For any amended assessment, fines or penalties imposed.
- Where a client participates in a financial arrangement or structure that hasn’t been sanctioned by a government agency.
- Where a client is involved in money laundering arrangements or where foreign generated or sourced income hasn’t been properly declared or where a tax haven or an offshore structure or arrangement has been utilised to hide the existence of such income.
- Where a client has been trading whilst insolvent or has entered into insolvency.
(# we can arrange separate cover should your client have a New Zealand based subsidiary)
Main points of difference:
- The option of including compliance audits, as well as audits of lodged returns.
- The term 'audit' automatically includes 'examination, inquiry, investigation, questioning, review or audit'.
- All individuals (and their spouse or partner, irrespective of the quantum or source of their income), trusts, superfunds, any trading or business entity and the like are covered.
- Compliance audits and general audits of superannuation funds, irrespective of type or member size, are automatically included, at no additional cost.
- No pre-condition that all liabilities must be paid at the time of lodging a return or that there's been full disclosure of information. There's no culpability factor! Mistakes happen, however, dishonesty, acting recklessly or the deliberate withholding of information is a different story.
- Professional fees incurred don't stop once the relevant government agency has issued their determination or assessment. What if the assessment needs to be challenged? What if there is a review of an assessment in isolation to an audit? Professional fees incurred to dispute any amended assessments, fines or penalties are covered until the selected sum insured is exhausted.
- Professional fees incurred to re-open a previous assessment based on a subsequent changed ruling are covered, but, only for any remaining sum insured available for that audit at the time it was first notified.
- Failure to maintain proper records won't strike out a claim, but the costs to re-establish records aren't covered. Clients are supposed to maintain and retain records in accordance with various legislation and guidelines.
- Notification of claims can be accidently overlooked. Late notified claims are covered, so long as the Audit Cover remains current.
Who's the insurer?
Zurich Australian Insurance Limited, 100% owned by the Swiss-based worldwide Zurich Financial Services Group and has a Standard & Poor's A+ rating.
Next steps
Please complete this Enquiry Form and we’ll be in touch ASAP.
Contact details
P: (02) 9261 4228 F: (02) 9261 4229 E: audit@auditservices.com.au
Audit Services Pty Ltd, PO Box 20756, World Square, NSW 2002
Authorised Distributor, Apex Insurance Brokers, AFSL 236871
