Audit Shield insurance
May 29, 2023
Audit Shield is an insurance policy that provides relief of having to pay the professional fees charged by your accountant when incurred as a part of your accountant being required to respond, on your behalf, to an audit, enquiry, investigation, or review (audit activity) instigated by Inland Revenue.
Last year Audit Shield claims highlight the areas Inland Revenue targeted their reviews and audits on, with GST verification and Income tax returns accounting for more than 91% of the Audit Shield claims. The major contribution to the claim activity for this category was an increase in GST verifications, Bright-line property rules campaign, and the real estate salesperson/agent’s work-related deductions campaign that started in mid-2021:
Last year saw the highest number reviews and audits from Inland Revenue from the following categories of clients, showing that Inland Revenue targeted a wide range of client types:
- Companies with under $500k turnover
- Companies between $1m - $3m turnover
- Sole trader/Partnership/Non-Trading Company & Trust.
The Audit Shield Master Policy ensures your professional fees will be covered in the event of an Inland Revenue initiated review, and audit activity with respect to your filed tax returns. The protection is retrospective, which means previously filed tax returns are included automatically, and all your entities are covered by a single policy.
If you would like to discuss whether Audit Shield is right for you, or you would like to purchase the Audit Shield Master Policy please contact us.
Contact us today for your no-obligation consultation.