We have been receiving an increased number of queries from the Inland Revenue in recent months around clients' financial activities. The instigation of an Audit, Review or Investigation on you or your business will likely result in associated costs. Even if there are no adjustments to returns, there would still be costs surrounding the preparation of material for the Inland Revenue and managing the response process. Depending on the type of investigation and its results, these costs can be anywhere from a few hundred dollars to a few thousand dollars.
For this reason, we have purchased an Audit Shield Master Policy in our name. This Tax Audit Insurance policy, underwritten by Vero Liability Insurance Limited, covers the professional fees incurred by our participating clients (up to a prescribed limit) for any Audits, Reviews or Investigations relating to both the current and all previous years' lodged returns.
This insurance cover does not automatically apply to you, unless you voluntarily decide to undertake coverage.
Our clients should have received an email this week with an invitation to undertake coverage for you and your associated entities. Should you wish to participate, please reply to us by email and make payment as per the client acceptance form. We receive the premium payment from you as an agent of Accountancy Insurance and your payment also includes a small fee payable to us to cover administrative costs for operating this service.
If you do not wish to take up this insurance coverage, we would appreciate a response declining the offer and if you do not want to receive this offer in future years, please advise us as such.
We consider Audit Shield to be a very effective way of planning for the professional fees for which you would be liable in the event of an Audit, Review or Investigation.
If you have any queries with respect to this insurance, please do not hesitate to contact us on (04) 970-1182 or email@example.com.