What was Insured?

A Client of Peter Vickers & Associates Pty Ltd took out Tax Audit Insurance.

As documented by Peter Vickers & Associates Pty Ltd, our client is in a business where there are large amounts of deposits via a merchant facility into their bank account. Our client was entitled only to a commission and thus reported in their BAS and income tax return only the commission. This is small compared to the total deposits.

The merchant facility provider was required to provide to the Australian Taxation Office their payments to taxpayers. The ATO computer was then used to find taxpayers that had not declared those payments as income. The computer thus found our client. The computer then instructed a human to begin a conversation with the taxpayer. As Peter Vickers & Associates Pty Ltd are the tax agents and our address is the address for communications, the conversation was through us.

When we informed our client about the ATO query they reminded us they had purchased Audit Insurance. We immediately contacted Vero Insurance who opened a claim file. We then went about collecting the information that the ATO requested. The ATO’s information was just a small proportion of the deposits so an extensive reconciliation was required. We then assembled the information and sent the report to the ATO. The ATO confirmed that the taxpayer had correctly returned their income. Answering ATO questions usually takes three times the time for the original work. We thus prepared our invoice for our time together with our detailed listing of time spent, and sent it to the insurance company which within days paid the cost of the audit.

Success! To learn more about the benefits of Tax Audit Insurance contact Peter Vickers Insurance Brokers Pty Ltd on 1300 784 011 if you need help with claiming on your insurance policy or even just advice on the best insurance cover for you.

Why choose Peter Vickers? – For dedicated Personal service, Professional results.