Tax Risk Insurance for employers.

Purpose:
 
Tax Risk Insurance is designed to cover the professional costs of defending a business, individual, or trust during a SARS tax audit or dispute. The policy pays for expert tax attorneys, audit specialists, tax accountants, and dispute-resolution professionals to represent the taxpayer.
 
In short, it turns unpredictable, often substantial advisory fees into a manageable premium.
 
Benefits:

• Provides expert skills to businesses through a cost-effective insurance policy.
• Supports effective and professional responses to SARS queries.
• Reduces administrative burden and cost volatility.
• Businesses access specialist tax defence without open-ended hourly fees.
• A well-managed tax dispute prevents cash-flow shocks and operational disruptions.

How it works:

• Activated by defined SARS events such as an audit notice, an adverse letter of findings, or an incorrect assessment.
• Covers Income Tax, PAYE, VAT, and Capital Gains Tax.
• The insured notifies the insurer upon becoming aware of a SARS query; the matter is assessed to confirm coverage and urgency.
• The insurer assigns approved tax attorneys and/or dispute specialists experienced in SARS procedures and tax litigation.
• The insured’s own tax accountant’s services and costs are included during the claim.
• Experts manage end-to-end engagement, focusing on procedural correctness and substantive fairness to reduce exposure.
• Exclusions and Duties: Policies generally do not cover the assessed tax, penalties, or interest; they fund defence costs. Common policy exclusions are fraud, wilful tax evasion, pre-existing disputes, as well as international tax matters, customs and excise, and employment tax incentives.

 
Costs:
 
Premiums are tiered by annual turnover for companies or annual taxable income for individuals.
 
Indicative ranges are:

• Businesses with an annual turnover of less than R 3 million:
  • R 265 per month.

• Businesses with an annual turnover between R 3 million and R 10 million:
  • R 415 per month.
• Businesses with an annual turnover between R 10 million and R 25 million:
  • R 595 per month.
• Businesses with an annual turnover between R 25 million and R 50 million:
  • R 1060 per month.
• Businesses with an annual turnover between R 50 million and R 100 million:
  • R 1540 per month.

Businesses with an annual turnover of more than R 100 million are priced based on the scope and limits.
 
The stand-out feature:
 
The defining advantage of Tax Risk Insurance is expert representation, funded from day one of a SARS intervention and carried through every procedural step without open-ended hourly bills. For many businesses, one well-defended audit can justify years of premiums. The policy’s value lies in converting a high-stakes, technical, time-sensitive process into a managed legal engagement with specialists who understand SARS procedures, evidence standards, and settlement pathways.