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If you are selected for a SARS’ tax audit or related dispute, we will appoint and pay for a team of tax professionals who will defend you. This may include tax attorneys, auditors, tax specialists, accountants and any other tax advisors required to ensure a fair outcome.
A Tax Risk Insurance policy will provide cover in the following matters:
Considering the risk, you are facing - not a lot! For the monthly cost of less than the average business lunch, Tax Risk Insurance will deal with your tax audit problems, effectively.
Premiums are dependent on your annual taxable income for personal taxpayers or annual turnover for companies. Click here to find out more.
Yes. There is an aggregate annual rand and number of hours limit and a ‘per claim’ limit. Your indemnity will be included in your quotation.
Exclusions under the policy include:
We only cover local taxes payable to SARS. Taxes payable outside of South Africa or on revenue generated outside of South Africa, or anything relating to exchange control, and customs and excise, are not covered under this policy.
Even if you employ the best accountant in the world and you believe, like most people, that your tax affairs are in order, SARS can still select you for an audit. The cost of defending an audit like this, can run into thousands of rands in professional fees. Most people and businesses don’t budget for this and can’t afford it.
Should SARS find absolutely nothing wrong with your tax affairs, which is most often the case, you will still be liable to pay the bill from your tax advisors for their services rendered. Tax Risk Insurance on the other hand, will appoint and pay for a team of top tax professionals to represent you during a SARS’ tax audit and dispute. Your accountant will probably be part of that team and their fees for services rendered during the claim will be covered by the policy.
Depending on the nature and severity of the SARS’ tax audit, we’ll establish a panel of experts in your defence. This will probably include your accountant but could also include external tax specialists from our panel including tax attorneys, tax accountants, tax advisors and other tax specialists. We’ll bring together the team we think would represent your case best. So we can find an effective resolution in the most efficient way.
Yes – errors are human. As long as there is no fraud or wilful tax evasion involved, we will continue with cover as normal.
All tax accountants are required by law to maintain Professional Indemnity insurance. Should you have been prejudiced by professional negligence on the part of your tax accountant, you may take issue against his Professional Indemnity insurance. Professional Indemnity insurance is separate from your Tax Risk Insurance policy, which pays for the cost of defence, if you happen to undergo a SARS’ tax audit and related disputes.
Tax Risk Insurance cover will not operate in the event of fraud and tax evasion. It’s absolutely imperative that taxpayers continue to pay their taxes as required and we encourage our clients to comply at all times.