If you’re a small business owner, you need to keep up with the various forms of insurance that you and your company need. The risks involved in owning your own business can be vast and varied and you need to have the right insurance to handle all of them. Fortunately, there is the audit insurance company which can readily help you in times of tax audit from the CRA.
For your business needs, you need to be protected by an audit insurance company, which is likely new to some countries worldwide. You may already have a tax audit insurance, have heard of it but don’t know how it works, or you may not know what these people are actually talking about. If you fall on the latter two classifications, then you need to know more to understand it.
So, What Exactly is Tax Audit Insurance?
If you have been lucky to avoid an audit, then it’s likely that you will fear that one day you’ll be part of the process. And if you have been subjected to an audit, you’ll likely understand it even if you have done no wrong. Note that the process of a tax audit can be excruciating and stressful, that it can cost you more of your time and money.
The concept of a tax audit insurance from an audit insurance company will protect you from all expenses of professional fees that will result to being audited, investigated and reviewed by the CRA. And whenever tax audits are concerned, the fees of employing a professional like lawyers, accountants, bookkeepers and other advisers are shouldered by the insurance provider.
As with any type of insurance, depending on the limit of your tax audit insurance, they will shoulder how much you can pay should your business need to be audited by the government agency.
How Certain are You that Your Business Will Be Audited?
Tax audits are typically done among small to medium enterprises. Just recently, the audit has been done to several companies on the rise. Their tax documents need to be audited, reviewed and investigated due to the government agencies audit benchmarks which need to be met. That’s why it’s always safe to secure a coverage from an audit insurance company for protection.