What is tax risk insurance?

Tax risk insurance is the most effective protection for you and your business if you’re ever selected for an audit by SARS. When you’re covered by a tax risk insurance policy, your tax audit problem becomes ours, immediately. Most importantly for you, the cost of employing top tax specialists to defend your case is covered by us, right from the beginning.

What are the conditions of my cover?

The following are conditions you need to meet in order to be covered. Should you not comply with these conditions, your Policy will not be valid and your claim will not be paid.

  • Only individuals with a taxable income of less than R5 million per annum, and companies with a turnover of less than R100 million per annum are covered. Should your income exceed this limit, please contact us at info@greatsoftassist.co.za for special consideration.
  • All your tax affairs must be up to date with SARS at the start of the Policy.
  • You may not be the subject of a current SARS investigation, audit or dispute, or know of any reason or circumstance that could lead to a claim under the Policy at the start date of your Policy.
  • You must disclose all relevant information to us that could reasonably influence our decision to accept you for cover under the Policy.

What are the limits of my cover?

The indemnity limits are dependent on your taxable income or annual turnover, and will appear on your quotation and on your Policy Schedule, which we’ll send to you after you’ve bought your cover.

How do I submit a claim?

  • Please contact us as soon as you become aware of a claim.
  • We must approve your claim before any costs are incurred.
  • Claims must be notified and submitted to us within 30 days of the commencement of an audit.

What am I covered for?

If you’re selected for a SARS tax audit, we’ll appoint and pay for the team of tax professionals who will defend you. These may include Accountants, Tax Attorneys, Auditors, Tax Specialists and other Tax Advisors – whoever we think are necessary in order to ensure a fair audit outcome. If you already have an accountant, he or she will become a central part of that team.

We will provide cover in the following matters:

  • Income tax audits
  • VAT
  • Employees tax audits
  • Capital gains tax audits
  • Dispute resolution hearings and appeals to the Tax  Board and the Tax Court

What are the exclusions of my cover?

There are some exclusions under the policy, which includes:

  • The costs related to the preparation of tax returns, and the supply of supplementary or supporting information as may be requested by SARS from time to time
  • Audits and disputes which have commenced prior to the inception of the policy
  • Fraud, crime, misrepresentation and tax evasion
  • Audits as a result of the late submission of tax returns without an extension
  • Matters relating to taxes outside of South Africa, and matters relating to income generated outside of South Africa
  • Matters relating to customs and excise, and exchange control legislation
  • Where no proper accounting records were kept
  • Any taxes, interest, penalties or fines imposed by SARS
  • Late notifications of claims to the Insurer

This is a factual summary of the most important aspects of the Tax Risk Insurance policy. For complete terms and conditions of the policy, please ask you financial advisor, or consult the full Policy Wording.

When you purchase this policy, you agree that you have read and understood the information provided in this brochure, and that you are able to consult with your financial advisor should you need to. You also agree that you are making an informed and independent decision, that you are able to afford the premium quoted, and that the cover suits your needs.