Over the years the team at Accountancy Insurance have been privy to an array of situations that our Audit Shield clients have found themselves in - at no fault of their own. Here are just a few real life case studies from what our clients have experienced with audit activity and how Audit Shield assisted them.

 

Retailer - “Help when we needed it”


Type of activity: GST Audit - No additional tax payable
End result: $6,800 accounting fees fully covered

A Melbourne retailer who was experiencing difficult trading conditions received a Goods and Services Tax audit. The financial cost of dealing with the ATO would have been a burden on the client. The outcome for the client was that the audit was dealt with at no cost to the business.

 

Business Group - “We have seen an increase in data matching”


Type of activity: Tax Audit - Capital Gains Transaction

End result: $25,000+ accounting fees covered

A group of businesses derived a capital gain. The ATO commenced lengthy audit action and support was able to be provided under Audit Shield for not only the firm’s assistance but also for legal assistance that was necessary for dealing with the ATO enquiry. The positive outcome for the client was that a robust and measured defence of the ATO claims could be made using the cover available.

 

Business Group - “We are thankful we opted into the service”


Type of activity: Employer Obligations Audit

End result: $7,374 professional fees covered 

A client was selected due to a data matching flag where the ATO believed the employees had claimed more PAYG withholding than the employer had reported. Although the discrepancy was cleared, the client was found to have not paid the correct amount of superannuation and was assessed for $4,083 in Superannuation Guarantee Charge.

 

Individual Taxpayer - “Audit Shield gave me peace of mind”


Type of activity: Tax Audit Review - client 100% correct

End result: $3,450 accounting fees fully covered

An individual living in country Victoria was data matched by the ATO and certain work related and rental property deductions were questioned. Our tier 2 client firm provided professional assistance and all the ATO questions were resolved. The positive outcome for the client was that they were fully supported by us, the audit assistance professional fee was covered, and the ATO cleared the client.

 

Self Managed Superannuation Fund - “Increased ATO audit activity”


Type of activity: Tax Audit Review - No cost for professional assistance

End result:$6,300 accounting fees fully covered

The ATO undertook a selective audit of a Self Managed Superannuation Fund. This audit focused on the activities of the Trustee. The positive outcome for the client was that the total professional cost of dealing with the investigation questions and liaison with the ATO was covered. 

 

Self Managed Superannuation Fund - “Everything was in order and I was still investigated”


Type of activity: Tax Audit Review - No cost for professional assistance

End result: $3,385 professional fees fully covered

In relation to information provided in the regulatory section of the SMSF's Income Tax Return, the ATO investigated rental income and expenses and member benefit payments over a two year period. The outcome was that the rental property was appropriately owned and accounted for. The member benefit payments had appropriate conditions of release. 

 

There are many more cases of Australian businesses and individulas being targeted by the Australian Taxation Office or other relevant government revenue agencies. For more information on how Audit Shield can assist your firm, please contact the team on 1300 650 758 or This email address is being protected from spambots. You need JavaScript enabled to view it..

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