Tax audit shield insurance and JobKeeper
Audit insurance covers JobKeeper audits and reviews
We have been notified that the tax audit insurance (Audit Shield) product which many of our clients have taken up, has included an endorsement to their policy which will include the cost of advice in relation to JobKeeper audits and reviews. This endorsement will extend not only to renewals but will be automatically applied to all current and existing policies. You do not need to do anything to have this endorsement added to your current policy or renewal policy. This endorsement is being added at no additional cost in premium.
This is very positive development as audits in respect of government funding are not usually covered by insurance. This will add a degree of comfort to the businesses who have taken out the Audit Shield policy and who are claiming the JobKeeper Payment, knowing that should the ATO review their eligibility, our costs of dealing with the ATO queries will be covered under the policy.
The new endorsement only covers JobKeeper payments. All reviews or audits of other COVID-19 support packages are not covered unless they form part of an audit of a lodged return (i.e. BAS audit, Payroll Tax audit etc.).
It only covers post payment reviews or audits so any issues or queries with the JobKeeper application process are not covered.
Additional information is available here.
Please contact your Ruddicks adviser if you have any questions about your Audit Shield policy.
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The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 10 May 2020, and was published around that time. Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time.
Any advice provided is not ‘financial product advice’ as defined by the Corporations Act. Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product. © Ruddicks 2020