Why it’s Important to Talk to your Clients About Tax Audit Insurance

Navigating conversations around audits with your clients sometimes seem daunting. While you are likely well-versed in dealing with the ATO, your clients may feel differently. As you are aware, the ATO has vastly improved their data matching capability, therefore they are increasing both the quantity and frequency of audits. With this in mind, it’s now more important than ever to ask your clients: Are you prepared for an audit?

The good news is that it doesn’t have to be a hard conversation. With a Tax Audit Insurance policy in place, your clients can be offered peace of mind before an audit occurs.

Here, we’ll give you the run-down on some easy do’s and don’ts when discussing Tax Audit Insurance with clients.

What You Can Say

Ask a question:
Have you thought about Tax Audit Insurance?

Share your experience:
I have had clients pay thousands of dollars in accounting and legal fees to respond to an audit notice from the tax office.

Share your knowledge:
I have seen a number of articles lately about increased audit activity by the ATO.

What You Can’t Say

Make a specific statement about cover:
All of expenses you incur in responding to this audit will be covered, not just professional fees.

Make Tax Audit Insurance mandatory:
You should/must have Tax Audit Insurance. We make sure all our clients have it before we lodge their returns.

State an opinion like:

  • Based on the nature of your business, I think you should have Tax Audit Insurance.
  • (This company’s) Tax Audit Insurance is the best on the market.
  • I recommend you take (this company’s) Tax Audit Insurance.

As an accountant, you know the stress and costs involved in responding to an audit can quickly escalate and take their toll. With the right approach and being armed with the right information, you'll be able to reassure your clients that they will not be significantly financially impacted in the event of an audit.

 

Guild Insurance is a proud partner of Partners Wealth Group. If you want more information about Tax Audit Insurance, get in contact with the team at Guild Insurance by calling 1800 810 213, or by visiting the Guild website.