AuditCover closes seed round

AuditCover , an Australian startup for tax audit insurance and risk mitigation, has closed its seed round led by Insurtech Gateway Australia.

Founded in 2019, it offers a digital insurance solution, underwritten by Lloyds, to enable accountants to quickly and easily manage tax audit insurance for their portfolio of clients to protect them against the rising cost and frequency of tax audits.

AuditCover General Manager Adi Snir said existing tax audit insurance options were cumbersome and were unable to offer broad portfolio coverage and protection.

“The Australian Tax Office (ATO) has been increasing its tax auditing activities* targeting millions of individuals and small businesses. But this process is far from transparent and often results in unexpected audits that lead to costly legal and accounting bills. Because of this, accountants are now spending a significant amount of time trying to manually promote and manage tax audit insurance policies. AuditCover simplifies, automates and optimizes this process. We aim to not only transfer the risk, through insurance but also reduce the risk of an audit in the first place through our data-driven approach” – Sni.