How Tax Risk Insurance Works
Insurance Options
Personal
R100,000 cover
from *R210 p/m
Business
R250,000 cover
from *R219 p/m
Trusts
R250,000 cover
from *R179 p/m
*Terms and Conditions apply.
Your clients need to know that:
- An accountant or tax practitioner cannot defend them in a court of law.
- It is very difficult for an accountant to be 100% up to speed with new tax legislation at all times.
- SARS is under pressure to meet targets, which is leading to increased audits.
- Many tax assessments are irrational.
- SARS doesn't always follow procedures and timelines.
- Taxpayers are at risk as they don’t usually understand their rights.
- The cost to defend against a tax audit is debilitating.
Each taxpayer must
have his own policy
WHAT WE COVER
The cost of defending your case or justifying your position to SARS can
be considerable.
We cover the cost of defending:
WHAT WE DON'T COVER
-
Audits and disputes which have commenced prior to the inception of the policy
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Audits from tax returns which were submitted late, without extensions being granted
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Where proper records were not kept
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Where fraud or crime is involved
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Costs of tax return preparation
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Matters outside RSA borders
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Any taxes, interest, penalties or fines correctly imposed by SARS
INDEMNITY LIMITS
WHY CHOOSE TAX RISK INSURANCE
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Only protection of its kind in South Africa in the event of SARS' tax audits and related disputes
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Available for businesses, individuals and trusts
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SARS is targeting SMMEs, trusts and High-Net-Worth Individuals (HNWIs)
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Cost of a SARS' tax audit and related disputes can run into thousands of Rands
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No matter how good your accountant/tax practitioner is, you may be selected for a tax audit
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Sometimes you need to go to court - tax lawyers are expensive
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Incorrect tax assessments can bankrupt you
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Cost of a SARS' tax audit can force you to shut down your business
HOW WE HELP YOUR CLIENTS
We offer individuals, business owners and trusts immediate expert assistance from unfair or incorrect tax re-assessments that often come with being selected for a SARS' tax audit.
We guarantee:
Affordable premiums
Easy to understand cover
Cover is retrospective - no waiting periods
Access to South Africa’s top tax specialists/ lawyers
Once policy is active - assistance no matter how far back SARS reassesses
Fair tax treatment and audit outcomes
Your accountant’s fees are covered for services during the claim
Can claim more than once a year
Experts to assist you when there is an unexpected SARS’ tax audit and related disputes
Fixed indemnity limits so you know what you have available
Make sure your clients have cover against SARS' tax audits and related disputes
Your client looks to you for professional, up-to-date insurance advice.
With SARS facing in excess of a R300 billion tax shortfall, they are under pressure to meet targets, which is leading to increased audits.
It’s no secret that they are targeting SMMEs, business owners, High-Net-Worth Individuals (HNWIs) and Trusts. More detailed tax audits and investigations are being performed to curb tax avoidance. The risk is clear and significant. Cover in the event of a SARS' tax audit has become a top priority.
In the event of an audit, preparation for effective representation to SARS can mean many hours, if not days, of preparation. Who pays for this work? Often the services of a tax practitioner or accountant are not enough and it requires specialised tax lawyers to defend a case.
Your client must be aware that they’re entirely responsible for their own tax affairs. Ensure complete peace of mind for your client with Tax Risk Insurance.
Why become a Tax Risk Insurance broker?
Partner up with Tax Risk Underwriting Managers and receive fantastic benefits, with our one-of-a-kind insurance product and extremely low pricing. Here’s how we can help you and your clients:
Affordability
Affordable premiums mean your clients get the cover they need.
Availability
Product available on multiple administration platforms.
Easy to understand
Tax Risk Insurance is simple and easy for clients to understand.
Training and Marketing Support
Giving you the right assistance when you need it.
Easy Claims Process
We will assess the claim and notify you when your claim is approved.
Get the Competitive Edge
Offer your clients the best protection against SARS' tax audits.
Product structure
Giving your clients the cover they can afford – Tax Risk Insurance is available as a standalone or VAP.
Simplicity
One-page application and claim form.
Become a Tax Risk Insurance Broker
Like our product and want to know more? Fill in your details below and we’ll contact you shortly.
Tax Risk Insurance online portal
As a broker, you want to ensure your services are easily accessible to your clients. Tax Risk has an online portal which you can host on your website. What does this mean?
- applying for a tax risk policy has never been easier– no having to fill in manual application forms
- policy activation takes a few minutes
- portal is linked to your broker code so the client and commission is automatically allocated
If you wish to host the Tax Risk Insurance online portal on your website, please contact us on info@taxrisk.co.za so we can set it up.
Example of the Tax Risk online portal
Case Studies
Mr Cassim’s owns a shoe retail shop in the commercial centre of Durban. He pays his taxes and submits his tax returns regularly and on time. He has a very good accounting firm taking care of his accounting and tax affairs.
Following the submission of his latest returns by his accountant via e-filing, SARS requested Mr Cassim’s accountant to submit some supporting documents to his tax returns. This is nothing unusual. SARS often calls for supporting documentation to verify the information contained in a filed tax return.
But then SARS called Mr Cassim directly for an appointment to further their investigation.
Mr Cassim is a Tax Risk Insurance policyholder and calls Tax Risk Underwriting Managers before the meeting for some advice. This was the correct thing to do, as this meeting would clearly have infringed on Mr Cassim’s rights as a taxpayer. He might have inadvertently incriminated himself, as Mr Cassim is not a tax expert.
Tax Risk Underwriting Managers notified SARS that our tax attorney service provider will be acting on behalf of Mr Cassim. We were able to successfully represent Mr Cassim in this matter, ensuring that SARS followed due process as required by the Tax Administrations Act and that Mr Cassim’s rights were equally protected.
Our client is a Trust, which holds the interests of a farm in the Western Cape.
Unbeknownst to the rest of the Trustees, one Trustee is audited by SARS and found wanting. SARS then proceeded to also conduct an audit on the Trust.
During the audit, SARS disallowed all the VAT inputs and underlying expenses in the farm for the past 10 years. The reason for this decision was not made clear.
This translated into an outstanding tax bill to SARS of just short of R10 million. Tax Risk Underwriting Managers stepped in to defend the case. After the cost of R150 000 in professional defence fees – SARS conceded and overturned their original decision.
The matter was settled on a PAYE short payment of R2 000, which occurred due to an administrative error on the part of the Trust. The Trust then paid this outstanding R2 000 to SARS, together with a small amount in penalties and interest.
Tax Risk Insurance rescues SMME from SARS nightmare
Mr Jones,* a sole trader, operating a medium-sized sales business from a smallholding in the northern parts of Johannesburg, believes that taking out Tax Risk Insurance for his company, saved his business from financial ruin.
Videos
SARS dips into taxpayers’ bank accounts
SARS is issuing garnishee orders against taxpayers’ bank accounts without issuing a summons, judgement or notification, regardless of whether the assessment is correct.
Pay now, argue later, principle
What actions you can take when SARS issues an assessment on you or your business which is incorrect or baseless but insists on ‘pay now, argue later’.
Taxpayers- know your rights when interacting with SARS!
Important guidance for taxpayers around their fundamental rights when interacting with the South African Revenue Service (SARS).
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