Tax audit insurance can provide protection for businesses and individuals from the financial costs associated with a tax audit.

The coverage may include:

• Defence costs: Legal fees, expert witness fees, and other expenses incurred in defending a tax audit.
• Settlement payments: Amounts paid to settle a tax dispute with the tax authorities.
• Interest and penalties: Interest and penalties imposed by the tax authorities.

Tax audit insurance is particularly important for businesses that are at a higher risk of being audited, such as those in high-risk industries or those that have complex tax returns.

It’s important to note that tax audit insurance does not guarantee that a business or individual will not be audited. However, it can provide financial protection in the event of an audit.