Who Needs Tax Audit Insurance?
The Tax Commissioner has predicted that almost 15% of small to medium enterprises will be subject to the ATO’s compliance program, including some form of Tax Audit. No matter what business you’re in, you may be unlucky enough to fall in to this 15%.
Some audits are random, some can be the result of an anonymous tip, but most are generated within sophisticated ATO computer databases. The ATO have excellent people and intelligent systems, and even if you do everything by the Tax Act, you can still come up for a tax audit; which can result in significant disruption to your business.