Tax Audit Insurance
An ATO audit can be triggered at random, even when your tax affairs are entirely in order. The cost of responding (accountant time, specialist tax advice and legal fees) falls on you unless you have Tax Audit insurance. Ardent places Tax Audit cover that reimburses these professional fees up to the policy limit. It does not pay any tax, interest or penalties.
Professional fees for answering ATO reviews and audits
A data-matching query that became a full audit
An illustrative example of how Ardent can make the difference in a time of need.
What started as a routine ATO query turned into a full audit covering several years. The accounting and legal work needed to answer it ran well past a normal compliance engagement.
The client held tax audit cover we had arranged at the previous renewal, and we lodged the notification as soon as the first ATO letter arrived, before any fees were incurred.
The professional fees for the accountant and the tax lawyer were covered to the policy limit. The client's cash flow was not hit by a bill nobody had planned for.
This is an illustrative example. Every claim is assessed by the insurer on its own facts and under the terms of the policy.
Our Tax Audit experts
QPIB · Dip. Fin. Serv. (Ins Broking) · ANZIIF (Snr Assoc) CIP
Mining, aviation, construction, retail and property
Steve has 40 years in insurance, most of it in construction and civil engineering, with underground mining, aviation, national retail and property development alongside. He is one of Ardent's founders, works from inside a client's business and keeps those relationships for the long term.
QPIB · Dip. Fin. Serv. (Ins Broking) · ANZIIF (Snr Assoc) CIP
The jewellery trade, childcare and commercial risks
Sarah co-founded Ardent and has more than 30 years in insurance in the UK and Australia, across commercial, property and casualty, professional risks and claims, with a focus on the jewellery trade and childcare. She works with each client to solve problems, plan ahead and see a claim through smoothly.
QPIB · Dip. Fin. Serv. (Ins Broking) · Dip. Integrated Risk Management · ANZIIF (Snr Assoc) CIP
Risk management and program design
Stephen co-founded Ardent and has 17 years in insurance, with clients from sole traders to multinational corporates. He works through the risks a business faces and helps decide what to avoid, reduce, retain or insure, balancing cover against cost. He has served on the committee of NIBA's NSW Mentoring Program.
What a client says about Ardent
Stephen and Ardent Insurance Solutions are unfailingly professional, knowledgeable and courteous.
Gratefully,
Michael
Tax Audit FAQ
No. Tax Audit insurance covers the professional fees incurred in responding to and defending an audit. It does not cover any additional tax, interest or penalties that may be assessed as a result. The value of the policy is in removing the cost of the defence itself, which can be substantial even where the outcome is favourable. Think of it as litigation insurance for tax disputes: it pays your lawyers and accountants.
No. Holding Tax Audit insurance should have no bearing on your audit risk. The ATO selects cases using data matching, industry risk profiles, random selection and specific triggers in your returns. The policy is a financial safety net for a cost that can arise however well managed your tax affairs are.
No. Like most insurance products, Tax Audit insurance must be in place before the insured event arises. You cannot take out a policy after receiving an ATO audit notice and then claim the fees that follow. That is why Tax Audit cover is best arranged as part of your annual insurance review, before any audit begins. Ardent recommends reviewing Tax Audit limits each year, as professional fees tend to rise over time.