Audit Fee Protection - Frequently Asked Questions
What is Audit Fee Protection?
The Audit Fee Protection provides for the payment of professional fees as a result of MJA being required to act for you in dealing with the Australian Taxation Office (ATO) or other government bodies (e.g. State Revenue Office) as a result of an audit or review.
Will my accounting fees be covered in the event of an Audit, Review or Investigation?
Yes, costs (fees) which are directly related to MJA attending to an audit or review by the ATO or any other government body will ordinarily be covered (up to the limit specified on your acceptance form). Standard accounting fees associated with any usual accounting work carried out throughout the year are not included under this cover.
What Audits, Reviews and Investigations are covered?
- Income Tax
- GST/BAS
- Fringe Benefits Tax
- Record Keeping
- Capital Gains Tax
- Payroll Tax
- Work Cover / Workers Compensation
- Self Managed Superannuation Funds (cover available separately)
- And many other lodged returns.
What professional fees are covered?
Accounting fees payable by you to us up to the completion of the audit or review or until the cover limit as stated on your acceptance form is fully used. Fees of any other outside organisations (e.g. taxation lawyers) or relevant consultants engaged or instructed by us to assist us in a response are also covered. If the fee is more than you cover limit then we may need to send a separate invoice for the excess fees.
Is the cost tax deductible?
Yes , a tax deduction should ordinarily be claimable for your participation fees.
We do remind our clients however that such items or circumstances as listed below are NOT COVERED: under out Audit Fee Protection.
- Audits, reviews or Investigations where notification was given prior to the inception of cover or your confirmation of participation;
- Punitive costs such as penalty tax, costs, interest or any fine;
- If the ATO auditor imposes final culpability/shortfall penalties of 75% or more, and/or the return is deemed to have been fraudulently lodged;
- Costs for work incurred which should have been done prior to the audit, review or investigation taking place;
- Marketed, mass marketed or tax exploitation scheme or arrangements without a product ruling;
- Any matter in relation to Child Support or Child Support Agency;
- Actions in regards to letters from any authority that are educational or advisory in nature; or merely suggest , invite or propose actions to be taken by you; or act as a warning to you that you may be selected for an audit at a future time; or do not compel you to take any action.