The subjects of tax audit insurance are randomly picked by the Canadian Revenue Agency or CRA. This means that anytime, you can receive a notification from CRA or a government agency that they want to review your returns and other related financial or tax documents. When this happens, you are liable to pay for the numerous hours devoted by government accountants or consultants to peruse your accounts and documents. The financial burden for the payment of these professionals can be eased if you or your company has tax investigation insurance cover.
Tax audits are may happen anytime as part of CRA’s job to ensure that tax obligations and compliance are duly met by individual tax payers or business entities. Thousands are subjected to these tax audits every year and by having ready tax audit insurance, your savings are protected and you also minimize financial risks. Paying unexpected substantial amount can be a blow to starting or small and medium enterprise which is why it pays to be ready for these usual events.
The premium of tax investigation insurance cover depends on varying factors. The type of coverage would also depend if you choose to cover professional fees payable to tax advisers, government accountants, solicitors, tax agents and even employees who may be required to participate in the activity. There are coverages that also provide for the travel and accommodation expenses in the event that the auditors and other officials need to travel to perform the audit.
In order to get an idea how much you are going to pay for the premium, it is only practical for you to ask for quotations from different insurance agencies. When asking for quotes, make sure to provide all the relevant information related to your financial and tax circumstance to ensure that you will get an accurate tax investigation insurance cover. Having a tax audit insurance coverage gives you that peace of mind that your daily activities and your finances will not be affected by any government investigation conducted on your accounts and tax returns.