Hi Guys,
I was recently approached by my accountant to get IRD Audit insurance, apparently he was asked to resell insurance at a cost of $189($89 mark up) but instead is offering his own form of insurance. The cost he's charging for my portfolio would be $69 or $92 annually.
For an audit, he would normally charge are:
IRD Risk Review $240 - $480 plus gst
IRD Audit $480 - $960 plus gst
My question is what are the chances of being audited? My formula for value on this is:
(480+960)*1.15*.7=1159.2(very roughly adding GST and less tax deductions)
69/1159.2=0.0595 or 5.95%.
if the chances were higher than 5.95% then that would make this a good decision and make savings over the general period of 16.8 years. But if I'm not likely to be audited in any greater frequency than that, it may not be the best decision. This is either prudent on my part, or a cunning business strategy on his...or both.
Any thoughts?
I was recently approached by my accountant to get IRD Audit insurance, apparently he was asked to resell insurance at a cost of $189($89 mark up) but instead is offering his own form of insurance. The cost he's charging for my portfolio would be $69 or $92 annually.
For an audit, he would normally charge are:
IRD Risk Review $240 - $480 plus gst
IRD Audit $480 - $960 plus gst
My question is what are the chances of being audited? My formula for value on this is:
(480+960)*1.15*.7=1159.2(very roughly adding GST and less tax deductions)
69/1159.2=0.0595 or 5.95%.
if the chances were higher than 5.95% then that would make this a good decision and make savings over the general period of 16.8 years. But if I'm not likely to be audited in any greater frequency than that, it may not be the best decision. This is either prudent on my part, or a cunning business strategy on his...or both.
Any thoughts?
Comment