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thanks for your reply :-) i'm thinking along the same lines too....they're just playing the 'what if' mind game and in all likelihood what are the chances of actually being unlucky enough to be audited right ;) out of interest though, would like to hear from those who have actually been...

Just wondering if anyone knows whether we can take out our own insurance (instead of going through our Accountant's insurance) to cover any professional fees charged in the case the ATO chooses to audit Us and if so who your insurance is with? Our Accoutant's firm is asking us (not...