Audit Shield Insurance provides for the payment of accounting fees incurred in the event that you are selected for an audit, enquiry, investigation or review instigated by Inland Revenue. Enquiries by Inland Revenue are common and whilst audits are not as common, they are completely random. Whilst the tax position you have taken may be correct there could still be considerable time and cost to deal with Inland Revenue’s questions in the event of an audit or enquiry.
Like any insurance, Audit Shield is not compulsory but can be of great help if Inland Revenue does come asking questions. We are aware of situations recently where considerable time has had to be spent satisfying Inland Revenue of a client’s tax position. With no Audit Shield Insurance, the client had to cover these costs.
If you would like more information, or have any questions, regarding Audit Shield Insurance please contact your advisor.