While the end of the financial year is still months away, now is the best time to get your tax affairs in order. As you gather the necessary receipts, expense reports and other documents, you may also want to consider taking out tax investigation cover as part of your business isurance plan.
Tax investigation insurance can benefit many Australian businesses but a number of companies fail to understand the importance of taking out this kind of cover.
So, what is tax investigation cover and how can they help you and your business?
What is tax investigation cover?
When the government singles out your business to perform a tax investigation, this process can be a costly affair. Average enquiries can last up to a full year and the legal fees and costs of hiring professional accountants and other specialists can run into tens of thousands of dollars.
Tax investigation insurance allows policy holders to make claims against these financial expenses, allowing their business to continue operating at normal capacity.
How can tax investigation cover help my business?
With a comprehensive tax investigation cover, you can protect your business from the financial burden of official tax enquiries.
Some small businesses burdened with legal fees and professional expenses related to a tax investigation could struggle to stay afloat, leading to a company contraction or even closure.
It is important to protect your business and your personal assets from the expense of a tax investigation. Holding tax investigation covers as part of a management liability insurance policy is the best and most effective way of doing this.
If you would like more information on tax investigation insurance for your company, you can contact MGA Insurance Brokers today.
MGA can offer access to comprehensive business insurance to suit the needs and potential requirements of Australian companies of all shapes and sizes.