Category Archives: Insurance

Don’t Start Business Without Insurance

Published by:

It does not matter if you are launching a small business or working as a sole proprietor, the important thing is that everyone should be aware of the need for insurance. This is quite essential because of the possible risk. For accounting firms, insurance such as Audit Shield will protect not just them but their clients in the event of a tax audit or investigation.

Many might be wondering about the risks and the kind of insurance that they shouldtake into consideration. According to Mike Barton who is the president of the Allstate Insurance, a business insurance based in the US, the insurance will depend greatly on the type of business that they are managing.

An agent for State Farm Insurance, Kevin Hayward who is based in Olympia, Washington, said that it does not matter what business you are handling but the best place to start is to get a general liability insurance coverage.

This is the best foundation policy that will cover any business. Hayward explained that any incidents that may occur while you are conducting business at home will not be covered by the homeowner insurance you have but with a general liability policy it is covered.

Another example is a hairdresser that sets up business at home and it unfortunately leaked due to problems in plumbing. Barton said that when this happens, the home insurance policy will not be covering it despite the fact the part of the home has been damaged because it occurred due to the home salon business. With general liability insurance, things such as this will be covered.

There are many types of business insurance such as business property insurance, income loss insurance, errors and omission insurance, data compromise insurance and cyber insurance.

A rheumatologist in New York, Dr. Mark Eberle, said that the law requires him to have malpractice insurance but aside from that he also has workers compensation insurance, general liability and disability insurance.

It is important to get the best value insurance rather than getting one that does not cover everything. For professional accountants, it is important to have insurance policies such as Audit Shield to protect their profession as well as their clients at the same time.

Substantial Results Generated From Crackdown On Corporate Tax Avoidance

Published by:

Recently Australia’s most senior tax officials revealed that profits on more than $7 billion worth of sales generated in Australia will be taxed for the very first time. ATO commissioner Chris Jordan said that the Australia’s tax system accounts for the growth of these sales which means that taxes should also grow based on the profits.

At the Senate inquiry, Chris Jordan told senators that the recent crackdown on corporate tax avoidance is generating substantial results. ATO started to focus on multinational tax avoidance in recent years. ATO has managed to complete more than 1,000 reviews and audits on some companies.Entities have publicly disclosed assessments and adjustments due to ATO pressure.

Chris Jordan believes that ATO has achieved positive results because they have managed to clean up the past on back taxes owed to the government. They are looking at future arrangements to safeguard against repeated chase and tidy up scenarios. The tax avoidance taskforce is now focusing on companies to ensure that they are abiding with taxpayer alerts and public guidance that have been issued. Because of the multinational anti-avoidance legislation, profits of more than $7 billion worth of sales generated in Australia will be subjected to tax for the first time.

At the senate inquiry, the ATO commissioner was joined by executives from giant tech companies that include Facebook, Google, Apple, Microsoft and IBM. According to executives from Apple, the five-year ATO audit of the company has been concluded without any penalties because Apple taxes are up to date and they have committed to keeping the authorities informed of any future changes.

Chris Jordan said that there are no issues between Apple and ATO because the global giant has a straightforward business model in Australia and has managed to record all transactions and revenue locally. Apple is a complaint taxpayer and belongs to the top 50 list of corporate taxpayers in Australia.

It is likely for your client to face a tax investigation in the future to determine whether he is compliant with the revenue regulations. This requires discussion with the client on the importance of insurance accountant to ensure that there is protection against the substantial costs that will be incurred in proving compliance.