Terms Of Engagement
This is to confirm our understanding of the terms of our engagement and the nature and limitations of the services that we provide for the year ended 30 June 2022 and subsequent years.
Our engagement is for you and your associated entities
Purpose, Scope and Output of the Engagement
It is agreed that we will provide the following services to you.
- Compilation of Financial Statements for the above entity(s) based on information provided. The preparation of these statements will be unaudited special purpose Financial Statements unless otherwise disclosed.
- Preparation of Regulatory Income Tax Returns for the above entity(s) including estimates of your taxation position and advice about taxation payments.
- Preparation of Business Activity Statements and/or Instalment Activity Statements for the above entity(s) where required.
- If applicable Corporate Secretarial Services in relation to any of the above companies that we act as the ASIC agent for. Refer below for the responsibilities.
- Advice as requested from time to time.
The engagement includes providing accounting and taxation related 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. As a result, no audit or review will be performed and, accordingly, no assurance will be expressed.
Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. We have relied on your representation of the accounting records and information as being correct. There is no assumption of responsibility for any reliance on our report by any person or entity other than yourself. The report shall not be inferred or used for any purpose other than for which it was specifically prepared.
In providing these services, it is agreed that we will not be undertaking any independent audit of the financial statements or the income tax returns prepared. Our role will be limited to assistance in the compilation of the financial statements and preparation of the relevant taxation returns based on the information and records provided by you to us.
While our engagement does not include the audit of your financial statements or income tax returns, we are required by the Tax Agents Services Act 2009 to satisfy ourselves as to the reasonableness of the information and claims being made in your income tax returns. The legislation provides the basis for this and may require us to make further enquiries with you from time to time in relation to your taxation returns. Where possible, we will endeavour to identify the information that will be required in advance. To ensure the efficient completion of your work, you agree to make available all information as is reasonably required in order for us to complete the various engagements agreed.
Some of your agreed work is subject to specific lodgement dates. Our objective is to ensure that all of your work is completed in time to meet these lodgement dates. This is reliant on receiving your work within a reasonable time period prior to those due dates (our recommendation is not less than 30 days) and having timely answers to any queries raised. We will agree to a work program with you each year, including the dates for both the receipt of work from you and our completion date.
From time to time, you may request that we undertake additional work for you other than what is described in this engagement letter. This will represent a separate engagement for which we will issue you with a separate engagement letter.
A separate engagement letter will be issued for any audit engagements, specific to that entity.
Corporate Secretarial Services
With respect to Corporate Secretarial services, we will be responsible for the following;
- holding the Corporate Register including minutes of meetings
- electronic filing of forms with ASIC via the ASIC portal as required
- forwarding of the Annual Company Statement issued by ASIC, including the ASIC invoice
- drafting the Annual Directors’ Solvency Minute
With respect to Corporate Secretarial services you will be responsible for the following;
- advising us in writing of any updates and/or changes required for the company as soon as possible and within 28 days
- providing us a copy of all minutes of all meetings held as soon as possible and within 28 days.
- pay for all fees issued by ASIC
- pay for any late fees issued by ASIC
Where the address of our office is used by a client company as the Registered Office, it is solely for the purpose of acting as agent for the receipt of any documents delivered or served upon the Company.
The address of our office may not be used as the Principal Place of Business by a client company unless a specific circumstance exists and approval in writing has been given by us for such a situation. Any documents received will be forwarded to the Company Secretary or dealt with in such manner as you may, from time to time, direct.
Your Obligations & Rights
The Tax Agents Services Act requires us to advise you of your rights and obligations where we are acting for you on taxation matters.
In relation to the taxation services provided:
- You are subject to the self-assessment system in relation to any of your income tax returns. The Commissioner is entitled to rely on any statements made in your income tax returns. Where those statements are later found to be incorrect, the Commissioner may amend your income tax assessments and, in addition to any tax assessed, you may also be liable for penalties and interest charges.
- You have an obligation to keep proper records that will substantiate the taxation returns prepared and which will satisfy the substantiation requirements of the Income Tax Assessment Act. Failure to keep such records could result in claims being disallowed, additional tax being imposed, and the imposition of penalty or general interest charges.
- You are responsible for the accuracy and completeness of the particulars and information required to comply with the various taxation laws. We will use this information supplied in the preparation of your returns.
Your rights as a taxpayer include:
- The right to seek a private ruling;
- The right to object to an assessment by the Commissioner;
- The right to appeal against an adverse decision by the Commissioner.
Certain time limitations may exist for you to exercise these rights. Should you wish to exercise these rights at any time you should contact us so that we can provide you with the relevant time frames and to discuss any additional requirements which may exist.
Responsibilities
You or your staff will be responsible for maintaining and regularly balancing all books of accounts, and the maintenance of an adequate accounting and internal control system. You also acknowledge that it’s your responsibility for the reliability, accuracy and completeness of the accounting records and that you have disclosed to us all material and relevant information.
Our involvement is this type of engagement will not disclose fraud, defalcations or other irregularities which may occur. However, any material weaknesses in the accounting or internal control systems which come to our notice will be drawn to your attention.
Please be aware that:
- (a) You are responsible for the accuracy and completeness of the particulars and information provided in relation to taxation services and this responsibility rests with you;
- (b) Any advice given to you is only an opinion based on our knowledge of your particular circumstances; and
- (c) A taxpayer has obligations under self-assessment to keep full and proper records in order to facilitate the preparation of accurate returns.
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 5 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 check the return before it is signed to ensure that the information in the return is accurate.
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 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.
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.
Confidentiality
We will treat as confidential and maintain the confidentiality of all information and records that you provide to us. This information will only be disclosed to a third party where you provide specific authority for us to provide this information to them, or where we are subject to a legal duty to disclose the information.
We may involve third party contractors or outsourced service providers in providing various aspects of your accounting work. These services may include:
- Accounting software providers which may have their data servers based overseas
- Accounting file preparation and/ or Data entry into our accounting systems
- Auditing of accounts (including Self-Managed Super Funds)
- Financial Planning & Dealing with Financial Institutions
- Home Loan, Business Loan & Personal Loan Services
- Investment and Insurance Services
Acceptance of our services in conjunction with this engagement document indicates your acceptance of the use of outsourced services as described above. Where the outsourced service requires that the disclosure of personal information to an overseas recipient, a consequence of your consent is that Grow Advisory Group will be required to take reasonable steps to ensure that Australian Privacy Principles are complied with by the overseas recipients of the Personal Information.
Our files may, however, be subject to review as part of the quality control review program of IPA Australia which monitors compliance with professional standards by its members. We advise you that by signing this letter you acknowledge that, if requested, our files relating to this engagement will be made available under this program. Should this occur, we will advise you. The same strict confidentiality requirements apply under this program as apply to us.
Electronic Communication
As part of our client service we may communicate with you and with others on your behalf by email. Email communications sent without encryption can be intercepted and may be read by a third party. Other potential risks include non-delivery or failure to read an email in a timely manner. In this regard, you agree to indemnify and release Grow Advisory Group from all claims arising from the use of email in our communication with you or the communication we undertake in the course of carrying out our assignment on your behalf or in accordance with your instructions.
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: https://www.psc.gov.au/
Ownership of Documents
The final Financial Statements, Income Tax Returns and any other documents which we are specifically engaged to prepare, together with any original documents given to us by you, shall be the property of you.
Any other documents brought into existence by us including general journals, working papers, the general ledger, draft financial statements and copies of tax returns, will remain our property at all times.
Fees
Our fees will be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus direct out-of-pocket expenses.
Any additional fee for an additional service not covered in the scope of this engagement will be the subject of a separate engagement letter under separate fee arrangements.
Accounts for services provided will be forwarded to you as work in progress. Payment of any account is required to be made within 14 days, unless special alternative arrangements are made with us prior to the due date.
It is our requirement that the owners/directors of the business personally guarantee the payment of all accounts for professional fees, including out-of-pocket expenses rendered by us from time to time.
Additional Charges on Overdue Accounts
The firm reserves the right to charge fees for external collection on overdue accounts if referred to a debt collection agency.
Lien on Documents
In relation to any subsequent termination of our services, you are advised that we shall be entitled to retain all documents belonging to you and any related parties we act for until payment is received in full for all outstanding fees.
The firm has also established dispute resolution processes.
Acceptance of Engagement Terms
Obviously, there are many issues to consider in this engagement and we ask that you consider all aspects of this letter to ensure that you are satisfied with the scope of our engagement.
Please contact us if you have any queries about this term of engagement
Acceptance will be acknowledged upon signing below. If you do not sign the terms of engagement, nor contact us with changes to the engagement, yet continue to provide us with information and instructions regarding your financial affairs, the terms and information provided in this letter will bind us both.
