Since the Australian Taxation Office (ATO) is focusing its efforts on tax compliance to reduce the $8.7 billion gap between the expected collections from individual taxpayers and the taxes that have been collected, it becomes more important to obtain chartered accountant insurance for protection. The number of audits that will be initiated by ATO are expected to increase.
Based on ATO’s study of individual tax returns, it was found out that 72% contained errors from incorrect claims for work-related expenses to rental property expenses and failure to report cash wages. It is easier for ATO to cross-check info from different sources to recognize the breaches through sophisticated data-matching technology.
Accountants can expect an increasing number of queries regarding tax returns. According to Craig Laughton, Executive General Manager of Policy, Advocacy and Public Practice at CPA Australia, the cost incurred in responding to a tax audit or government compliance investigation will become a controversial issue between an accounting practice and its clients.
The audit process is time consuming because of the time required to make preparations to respond to audit findings. Having an appropriate tax audit insurance coverage will cover the costs associated to the tax audit. However, accountants must be alert because there are pseudo tax audit protection services being offered.
On the surface, it would appear that pseudo insurance is a cost effective solution but underneath it all, the accountant may be paying for a service that has no insurance backing. It is important to check what the insurance policy covers and what it doesn’t. Instead of an audit risk being transferred to an insurance firm, they are only self-insuring because there is no associated external insurance cover.
Accounting practices that do not have proper insurance may find themselves at a disadvantage because the associated costs of responding to a tax audit can be substantial.
It is definitely worth having chartered accountant insurance that will cover the professional fees resulting from an official audit, enquiry, investigation, review or examination instigated by Inland Revenue or New Zealand Government Authority. Once there is insurance, the risks are transferred to the insurer that will pay for the total costs of responding to a tax audit.
Boilers work to provide heat especially during cold season. And many homeowners have experienced break downs in their boilers at any time. It can be a major concern among them especially when their boilers don’t provide the required heat for a comfortable temperature in their rooms. This then will need a registered engineer to diagnose the broken boiler. For more info, check out a website that offers the fastest and most efficient boiler repair.
How to Find A Boiler Engineer
Should your boiler break down, you need to find an engineer that can do the repairs. Whether you’re not covered by a warranty, haven’t insured your gas boiler, or insurance asks you to contact and engineer yourself, be ready to find one in cases of emergencies.
- Qualifications: You need the boiler repair engineer registered with Gas Safe to be recognized as licensed.
- Experience: Ensure that the engineers you’re asking for a quote have the best credentials and experience for the job. It is really helpful if you find a recommendation from a friend, or you can contact a national company.
- Check Reviews: Read reviews and testimonials from current and previous customers indicating the boiler repair engineer is reputed and trustworthy.
- Quotes: You need to check websites for more info about prices and features stipulated in quotes. Even if the boiler is insured, there are some insurers that limit the amount of claim on their policy, or even increase the premium. So, choose engineers that offer competitive prices for the right services.
So, never attempt to fix your own boiler without the required qualifications for the repair. Boilers are sophisticated devices that require knowledge, expertise and experience. For more info, reputed engineers usually work independently, for a smaller regional company or a renowned national company.
Depending on how you choose, you don’t need to accept the first quote offering boiler repairs. You need to compare them and see which engineers can offer the best service for you. Never compromise their expertise. So, choose a boiler repair company that guarantees the repair or replacement of your boiler, even in times of emergency.
Managed services providers (MSPs) are starting to see the necessity of liability insurance policies as the IT field continues to grow more complex. They see this change as a necessity to get the right coverage for their businesses.
Michael Corey, who used to work for a managed services company, recalls a time when a large oil company wanted to hire their services to manage its computes remotely. He says that although they have not formally met yet, the company wanted Corey’s firm to insure them for up to $20 million in case something unexpected happens, leading to an explosion, fatality, and/or damages while one of his people was on site. It was understandable as companies have been following this standard practice for years when dealing with service providers. However, Corey argued that the amount that the client was looking for was nowhere near expected. It took him a lot of meetings and negotiations before he finally got a waiver. He said it slowed down the sales cycle by two months—two months spend negotiating and explaining each other’s sides instead of getting started with the actual work. Corey now works as a co-founder of an audit protection insurance and license management for Oracle called License Fortress.
Liability Insurance Policies
With the growing popularity, and therefore risks, in data management, MSPs are starting to consider liability insurance policies to protect themselves. A cyber liability insurance, in their perspective, is absolutely necessary for when unexpected harm happens to the customer while they are in charge. As of now, not all MSPs have this kind of insurance, which makes it difficult for them to protect themselves from data loss or cyberattacks—things that could harm their clients which, sometimes, is out of their control. It works in a similar fashion with audit protection insurance in a way that users are protected from unexpected costs incurred to them through no fault of their own.
Corey adds that when a management services provider takes over a business’ IT environment, their clients put their trust on them. This means that once they take over, they are held responsible for everything that happens to it, even in terms of cyberattacks and other things out of their control. They believe that liability insurance policies will help MSPs perform their duties while getting proper coverage as well.
The frequency of tax audits and investigations have substantially increased because of technology tools that enables detailed cross referencing of information from different government agencies. When an individual or business is subjected to tax audit, costs can be substantial. It is for this reason why there is coverage provided by audit insurance company to cover professional fees that will be incurred during the response process.
Port Coquitlam mosque was recently cited for some financial irregularities and potential ties to overseas funding linked to militant Islamic group Hamas. The mosque expects to receive a federal grant worth $53,000 for the improvement of security in communities that may be subjected to hate-motivated crimes. According to the Ministry of Public Safety and Emergency, the money will be used for the procurement and installation of CCTV’s and alarm system at Masjid Alhidayah and Islamic Cultural Centre on Kingsway Avenue.
Last May, the society that that operates the PoCo mosque was required to pay a fine of $9,120 after Canada Revenue Agency (CRA) audit from 2011 to 2013 revealed thousands of dollars in financial irregularities and questionable expenses amounting to $127,000. CRA noted spending that amounted to $66,028 for groceries and pharmaceutical items, $22,193 for gas and car washes, $2,967 for meals taken at restaurants, $4,239 for electronics items that include PlayStation games and an iPad and $4958 for an Evolution spa.
Most of the expenses that were paid through the credit card of Mr. Bahr were reimbursed but they are considered as personal expenses constituting undue benefits. The CRA also noticed some links to the Eid Foundation, an organization based in Qatar and member of Union of Good, an organization created by Hamas leadership to transfer funds to terrorist groups.
The government takes seriously allegations of links to organizations that support terrorism. However, CRA has chosen not to revoke the status as a registered charity.
The benefits that can be gained from audit insurance company apply to both the accountant and the client. It is human nature to commit mistakes but when it comes to tax audit, mistakes take a new meaning. Audit insurance is the protection from substantial costs that will be incurred from having to sort out all audit requirements.