Tax investigation insurance is an insurance policy which offers to protect taxpayers from the financial consequences of a tax investigation by HMRC. Insurance policies are taken out by individuals or businesses that want to protect themselves from the cost of professional advice when a tax enquiry arises.

Tax investigation insurance is an insurance policy which offers to protect taxpayers from the financial consequences of a tax investigation by HMRC. Insurance policies are taken out by individuals or businesses that want to protect themselves from the cost of professional advice when a tax enquiry arises.

In simple terms, it is an insurance cover for your taxes which includes but not limited to the following:

Tax investigation insurance is an insurance cover for your taxes which includes but not limited to the following:

  • It protects you from the financial consequences of a tax investigation by HMRC.
  • It covers the cost of professional advice when a tax enquiry arises, including legal fees and expert witnesses.
  • It can be taken out by individuals or businesses, but must be renewed annually in order to qualify for its benefits under current legislation (which will change over time).

Paying for our tax specialists’ expertise

We will pay for the expertise of our tax specialists. Our tax investigation insurance covers the cost of our experts’ expertise, which includes:

  • Reviewing your records and information
  • Conducting interviews with relevant parties (such as employers, employees and other witnesses)
  • Gathering all available evidence in order to present it at trial or on appeal.

You should know that the insurance covers the cost of defending against allegations of fraud and negligence. It also protects you in case your company is sued over a claim, as well as paying legal fees if any.

Reimbursement of lost tax records

Tax investigation insurance includes reimbursement of lost tax records.

What are tax records? They are the documents that support your case and prove that you have paid all your taxes. For example, if you have paid $100 in income tax, then this is a record that shows this amount was paid to the government. Similarly, if you have paid sales tax on something (whether it be online or offline), then this too would be considered as one of your records when filing an appeal against an assessor's decision or audit report.

Why do we need them? Because without these vital documents proving that we've met our legal obligations as taxpayers every single year since 2002! Without them there really isn't much point in appealing against anything because there won't be any evidence available for review by anyone else other than ourselves after all

Tax investigation insurance is a type of insurance that covers your tax liability. It is not a legal service and it's not a financial product, so don't go looking for it in the Yellow Pages under "tax services".

It is a good idea to take out this insurance policy to protect yourself from the financial consequences of a tax investigation.

 

Source: https://apxiumtaxaudit.blogspot.com/2022/07/know-everything-about-tax-investigation.html