Here's some answers to frequently asked questions about our products and service. Click a question to reveal the answer.

Q1. How is AB Phillips Tax and Government Audit insurance different to others available in the market?

AB Phillips offers a more comprehensive cover including more audit types, higher limits and a wider range of entities as well as providing the most secure and streamlined systems and support to ensure maximum returns with minimal effort.

Q2 Will it cost my practice anything to offer Tax and Government Audit Insurance to our clients?

Apart from the cost of postage and your letterheads utilised in the mail out to your clients, there are no additional costs involved. AB Phillips provide all mail out materials, completely manage the implementation and provide ongoing support materials free of charge. 

Providing AB Phillips Audit Insurance will make you money! Each time a client accepts the offer to take up the cover, you receive a dividend. Typical annual income is around $6,000 per business services partner.

Q3. Does AB Phillips charge for their services?

No, all the set up, implementation and ongoing software and support are provided free of charge. (You only pay for the postage and your letterhead)

Q4. How do I make a claim?

It’s easy! Simply download and complete the claim form. You lodge your claim and supporting materials in soft copy. Claims are managed and reviewed by our qualified accountanting staff, so that you can be sure you're dealing with a professional who understands your business, rather than an insurer. When you are ready to submit an invoice for the work completed, we review the claim, and will generally have them paid within 14 days.

To submit a claim you will need to provide us with:

  • Claim form
  • Invoice
  • Opening and closing advices from the Auditing bodies (or if these are not available a written declaration from the practice providing the details)
  • WIP account relating to the matter (if over $1,000).

There are no excesses to consider.

We have attempted to fit the claims procedure into your normal billing cycle to maximise the benefits to your business."

Q5. Can we claim for all time involved, even answering phone queries?

Yes. All the time involved in responding to enquiries, questionnaires, audits, reviews and investigations of client’s lodged returns, including those from previous years are covered by the policy.

Q6. Is there an excess on the policy?

No. 100% of costs are paid for all approved claims.

Q7. We receive a lot of BAS queries and are seeing more Workers Compensation reviews. Are these covered?

Yes. ANY query raised in relation to a lodged return is covered.

The policy includes all returns lodged with the ATO or any federal or state based agency including:

  • Income Tax
  • High Net Wealth reviews
  • BAS
  • GST
  • FBT
  • Capital Gains
  • Client Risk reviews
  • R&D Tax Benefits and Grants
  • SMSF
  • Super Guarantee
  • Centrelink
  • Child Support
  • Employment Conditions
  • Work Related Expenses
  • Payroll Tax
  • Land Tax
  • Stamp Duties
  • Workers Compensation and QBSA.

Q8. Are legal fees covered?

Where a legal opinion, defence or appeal is required in responding to the query, investigation or audit, these are covered by the policy, as are professional fees for superannuation or tax specialists. 

Q9. So what isn't covered?

Exclusions have been minimised to ensure the policy can be a positive and active tool for the practice to use. Primary exclusions include:

  • Returns which should have been lodged - which have not been lodged at the time of audit commencement
  • Claims where you or the client were notified of the audit prior to policy commencement
  • Taxes, penalty tax, costs, interest and fines
  • Claims where an ATO audit results in a final culpability penalty of greater than 75%
  • Where there have been fraudulent acts or omissions knowingly committed by you or your client or on your client’s behalf
  • Mass Marketed Schemes without a product ruling.

The policy does assume an acceptable level of care, diligence and commonsense is evident in the management of your clients affairs by both you and your client.

Q10. What about FSRA. Am I breaching this by offering Tax and Government Audit Insurance to my clients?

No. AB Phillips is fully FSRA compliant and has ASIC relief.

Q11. Can I "Self Insure" by billing my clients to create a pool to draw from should one of them be audited?

No. Self Insuring breaches FSRA and the Insurance Act. Severe penalties apply.

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