Insurance to cover accountants' fees in case of audit

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 mandatory) to pay $430/yr to take out this insurance. If we get audited, our Accountant will claim their professional fees from their insurance.

Our last accounting bill was around $10K so i'm thinking if we were audited, to fork out an additional $10K for them to prepare our paperwork and manage the whole process would hurt :eek:

Anyone mind sharing which insurance company they're with and your thoughts on whether you think its worth it or not?
 
Not sure if you can get alternative insurance for this.

However, the premium would also reflect your risk and coverage required.
Our accountants audit protection service was quoted at $650.
That covers:
2 x Companies
2 x Trusts
2 x Individuals

Personally, I'm willing to take the risk on this one.
 
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 audited by the ATO! Surely of all the Somersofters on this forum at least a handful of us if not more must have been audited at some stage!
 
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 audited by the ATO! Surely of all the Somersofters on this forum at least a handful of us if not more must have been audited at some stage!

I assume details of the insurance company & policy so that you could look further into it weren't provided ?
 
We go to H & R Block in Canada.
If we get audited, they stand beside us for free.
I like that.

We were audited once, before, when we went to a tax accountant. He made us sign a document when he first prepared our tax returns, stating he would not be responsible if we got audited.
Being naive..that should have been our first red flag.
 
Back
Top