Management Liability

An insured accountancy practice received a notice from the ATO advising that they intended to review several years of income tax, capital gains tax, and superannuation payments.

The accountancy retained specialist tax accountants to prepare an audit report. The entire process took over nine months to complete, and in the end, the ATO deemed that all was in order and did not impose any penalties.

The accountancy’s Management Liability policy covered $87,500 of their tax audit costs ($88,500 minus the policy deductible).

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover for Brokers.

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