Updated: May 4, 2022
In business there are those who are risk takers, those who are just getting by, those who are compliant and those who aren't. In business we all generally understand what our attitude to risk is, that is we:
Avoid or resolve the risk
Mitigate the risk
Transfer the risk i.e. Insurance
Accept the risk choosing not to resolve, transfer or mitigate.
No matter what our attitude to risk is, we are all exposed to the same scrutiny by Inland Revenue "IR". For some of us, we have the confidence we are fully compliant with legislation, and are comfortable responding to enquiries from IR. For others of us, while we are confident we are fully compliant, responding to an IR audit is an interruption to our business life that we just want to delegate off to someone else (such as your accountant).
Here at Business Studio we provide our clients the opportunity to take out Audit Insurance. We are sure you will have a number of questions, such as
What is covered?
How common are audits, and do I really need to think about this?
Who provides this type of Insurance?
We have partnered with Accountancy Insurance and their insurance solution Audit Shield, which provides the Audit Shield Master Policy for the tax audit insurance, that is central to transferring the costs associated with IR audit risk.
Business Studio services does not include the provision of Financial advice, that is FMA Financial Advice Services, such as Investment Advice or Insurance Advice. As noted in our General Terms of Business any comment/s made on the subject of legal or investment matters should be interpreted as only a personal view and not professional advice.
Our Audit Shield Master Policy
Protection against unplanned costs
No one wants to be audited and we have no reason to suspect you will be. However, even with 100% accuracy accountants and their clients can still come under scrutiny by Inland Revenue (IR). It is for this reason that we provide the Audit Shield Master Policy. What is the Audit Shield Master Policy? Our Audit Shield Master Policy provides for the payment of professional fees, including specialists, incurred in the event that you are selected for an audit, enquiry, investigation, review or examination instigated by IR. The cost of being properly represented in these matters can be quite considerable depending on the length of time involved.
Even the simplest enquiry can require hours of work. What is covered? All professional fees up to a prescribed limit (with no excess) are covered when you engage us in audit activity matters. Our fees, legal fees, bookkeeping fees and other specialist professional advisor fees are covered. Our Audit Shield Master Policy also provides retrospective cover so all previously lodged returns are included in the coverage.
The list is extensive as to what is covered under our Audit Shield Master Policy. Income Tax, GST, PAYE, Fringe Benefits Tax, Employer Benefits, Dividend Withholding Tax and Resident Withholding Tax are just a few inclusions of the comprehensive offering. Is it right for you? All of our tax agency clients can take advantage of our Audit Shield Master Policy. Different levels of cover are available for salary/wage earners and businesses.
Anyone can be targeted, even if their lodgements are accurate. It is no reflection on the quality of work from you, your team, or our team. With this in mind, we offer you the opportunity to protect yourself with our Audit Shield Master Policy.
The top five reasons people choose to participate in our Audit Shield Master Policy:
Reputable provider – More than 3500 accounting firms across New Zealand, Australia and Canada trust Audit Shield, and offer it to their clients.
It is tax deductible – A bonus of our Audit Shield Master Policy is that you can add it to the list of your tax deductions each year if you are in business or are self-employed.
You are comprehensively covered – All of your current and previously lodged returns are covered by our Audit Shield Master Policy, even if you had another accountant taking care of your tax affairs in the past.
There are no unplanned fees – Where there are adjustments required to your lodged returns, our Audit Shield Master Policy will cover the cost of the professional fees, including specialists we may need to engage to assist us on your behalf.
It is simple – In order to be covered under our Audit Shield Master Policy, all you need to do is reach out to us and we will provide you with a cover proposal, if you accept the terms of the proposal, you then complete the Client Acceptance Form, and make payment for the policy premium.
Interested? We value your opinion. If this service is of interest to you and you would like further information to consider the offer, please talk to our team.