TERMS OF ENGAGEMENT
1. The Purpose of this document
This document outlines the terms of our engagement and the nature and limitations of the services that we provide.
2.1 The firm will provide accounting, taxation and business services which will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB). The extent of our procedures and services will be limited exclusively for this purpose only.
The firm will provide the following services; this list is not limited to and does not exclude other work when requested from time to time.
- Complete the income tax returns and associated financials for the tax years ending 30TH June 2016,
- Complete ongoing income tax returns and financials,
- ASIC compliance and corporate governance when required,
- Act as tax agent,
- Other work that can be completed when requested is as follows but not limited to, preparation of cash flows, budgets, provide information for finance applications, provide advice on structuring, provide information to the ATO, forward correspondence from various parties including the ATO and ASIC, management accounting, analysis of financial performance, tax planning, interim position, due diligence, business activity statements (BAS), instalment activity statements (IAS), preparation of figures for the business to be sold, taxation advice, interim tax position, obtain payment arrangements with the ATO and ASR, payroll tax, accounting advice, superannuation fund compliance which includes financials and income tax returns, banklink and all other work that is requested from time to time,
- Use of contractors from time to time,
- Unless specified, general correspondence will be electronic ie ATO notices, accounts etc.
2.2 Unless specifically provided for in clause 2.1 above:
- no audit or review will be performed and, accordingly, no assurance as to the accuracy of the instructions you provide to us from time to time will be expressed; and
- our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. We will however inform you of any such matters that inadvertently come to our attention.
- The Terms of Engagement will be for the financial/tax year 1 July to 30 June and that the engagement will continue until terminated by either party. We will not deal with earlier financial/tax year periods unless you specifically ask us to do so and we agree;
- There is no assumption of responsibility for any reliance on our reports by any person or entity other than you. Any reports shall not be used for any purpose other than that for which it was specifically prepared. Accordingly, all our reports are subject to this disclaimer whether expressly noted on same or not;
- Prior to being able to provide services to you or complete any reports for you, we will from time to time request documents and information from you. You must provide us with the requested documents and information in a timely manner.
4.1 Personal information about you, provided by you and other sources, is protected under the Privacy Amendment (Private Sector) Act 2000. In conducting this engagement, information acquired by us in the course of the engagement is subject to strict confidentiality requirements. The acquired information will not be disclosed by us to anyone except as required or permitted for by law, or with your express consent.
4.2 We wish to draw your attention to our firm’s system of quality control which has been established and maintained in accordance with the relevant APESB standard.
4.3 You are responsible for the reliability, accuracy and completeness of the accounting records, particulars and information provided and disclosure of all material and relevant information. You are required to arrange for reasonable access by us to relevant individuals and documents, and shall be responsible for both the completeness and accuracy of the information supplied to us. Any advice given to you is only an opinion based on our knowledge of your particular circumstances.
4.4 A taxpayer is responsible under self assessment to keep full and proper records in order to facilitate the preparation of a correct return. Whilst the Commissioner of Taxation will accept claims made by a taxpayer in an income tax return and issue a notice of assessment, usually without adjustment, the return may be subject to later review. Under the taxation law such a review may take place within a period of up to 4 years after tax becomes due and payable under the assessment. Furthermore, where there is fraud or evasion there is no time limit on amending the assessment. Accordingly, you should thoroughly check the return before it is signed to ensure that the information in the return is accurate.
4.5 Where the application of a taxation law to your particular circumstances is uncertain, you also have the right to request a private ruling which will set out the Commissioner’s opinion about the way a taxation law applies, or would apply, to you in those circumstances. You must provide a description of all of the facts (with supporting documentation) that are relevant to your scheme or circumstances in your private ruling application. If there is any material difference between the facts set out in the ruling and what you actually do the private ruling is ineffective.
4.6 If you rely on a private ruling you have received, the Commissioner must administer the law in the way set out in the ruling, unless it is found to be incorrect and applying the law correctly would lead to a better outcome for you. Where you disagree with the decision in the private ruling, or the Commissioner fails to issue such a ruling, you can lodge an objection against the ruling if it relates to income tax, fuel tax credit or fringe benefits tax. Your time limits in lodging an objection will depend on whether you are issued an assessment for the matter (or period) covered by the private ruling.
5. Corporate or trust entity guarantee
If you are a company and/or a trust then each of the directors and shareholders of the company and each of the units holders (if the trust is a unit trust) or each of the primary or default beneficiaries (if the trust is a discretionary trust) personally guarantee the companies and/or trusts performance of the obligations of the Terms of Engagement. This is an essential term of this agreement and includes but is not limited to the payment of our fees and disbursements.
6. Professional fees, disbursements and other items
6.1 Our professional fees charged are an amount calculated by reference to the amount of time spent on the task(s) by the appropriate charge rate (plus GST).
Time is charged in three minute intervals – with three minutes being the minimum interval recorded for professional services.
6.2 Disbursements may include:
- ASIC registered office fees billed annually plus GST;
- Other ASIC search and lodgement fees;
- Interest charges on outstanding fee (percentage is noted on the invoice/s)
- Bank link fees.
- Use of the Qgr trust account
Disbursements that we incur on your behalf will be charged to you on a cost basis, that is, reimburse the expenses actually incurred. All other corporate secretarial services are undertaken as per clause 6.1 above.
All Professional fees, disbursements and other items in these Terms of Engagements are GST exclusive unless otherwise stated to be inclusive of GST. You will pay us an additional amount on account of any GST which we are liable to pay as a result of any supply we make to you.
We may increase the hourly charge rates and disbursement costs referred to in this agreement once every twelve months from the date of this agreement.
7. Billing and interest charges
Bills will be sent to you containing information of professional fees, disbursements, other items and GST at monthly rests. Our bills are payable on receipt of the bills. The firm reserves the right to charge interest on outstanding amounts at a interest rate noted on the invoice/s.
For the purpose of this agreement you will be deemed to have received our bill if it is given to you or to your agent personally, on the day it is given to you or emailed to you, or on the third business day following the day on which we post it to you by ordinary prepaid post.
8. Limitation of Liability
Our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils’ website: http://www.professionalstandardscouncil.gov.au.
9. Ownership of Documents
9.1 All original documents obtained from you arising from the engagement shall remain your property. We do, however, reserve the right to make a reasonable number of copies of the original documents for our records.
9.2 If our engagement results in the production of financial/tax year-end reports and accounts, income tax returns and any other work requested you, ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain the property of the firm.
Without affecting any lien to which the Firm is otherwise entitled at law over funds, your file, papers and other property in the Firm’s possession:
- The Firm will be entitled to retain by way of lien any funds, file’s, papers and all of your property which are from time to time in its possession or under its control until all fees, disbursements, interest and other moneys due to the Firm have been paid; and
- The Firm’s lien will continue notwithstanding that the Firm ceases to act for you in accordance with clause 10 of these Terms of Engagement.
10. Termination of the Terms of Engagement
10.1 You may terminate these Terms of Engagement at any time on the giving of 7 days written notice.
10.2 Should these Terms of Engagement be terminated at any time, you remain liable for the professional fees, disbursements and other items up until that time.
10.3 If you do not pay monies in accordance with these Terms of Engagement, this firm may suspend work and may cease acting for you without notice. This firm will not continue to do the work and may terminate the agreement without notice to you:
- if you fail to pay our bills or deposit monies to our account as required from time to time;
- if you fail to provide us with adequate instructions within a reasonable time; if you give instructions that are deliberately false or intentionally misleading;
- if you fail to accept advice we give you;
- if you engage another accounting practice to advise you without our consent;
- if we, on reasonable grounds, believe that we may have a conflict of interest;
- if you ask us to act unethically; or
- for other just cause.
10.4 If the agreement is terminated either by you or this firm, you will be required to pay this firm’s professional fees, fees for other items and expenses and disbursements up to the date of termination.
10.5 This firm will give you notice of its intention to terminate our agreement, and of the grounds on which the notice is based.
10.6 On termination, this firm is entitled to retain possession of your documents and trust money while there is money owing to us for our professional fees, fees for other items and expenses and disbursements, unless and until security is provided for our costs.
10.7 If the firm gives you notice of an increase of the hourly rates of charge in accordance with clause 6 above, you can either:
- within 7 days from your receipt of notice of the increase, terminate these Terms of Engagement by written notice to the firm; or
- do nothing and you will be taken to have accepted and agreed to the increased hourly rates of charge.