Terms of Engagement of Allied Business Accountants
I am pleased to accept the appointment as your accountant and tax agent and now set out my understanding of the scope and terms of this engagement.
The scope of my engagement will include services and advice in relation to accounting, taxation and financial matters. The scope of my engagement will exclude financial advice requiring an Australian Financial Services Licence.
I consider that I have the necessary skills and expertise to perform the services covered by my engagement.
Reliance on your financial data
My engagement does not extend to the audit of the financial data you provide to us. As such, I will rely on and process the financial data without any review of the source documents and, in doing so, I will assume you have all the necessary supporting documentation. If the financial data you provide to us is inaccurate or incomplete, or is unsupportable, this may result in adverse consequences for which I shall not be responsible. Although I will adopt generally accepted accounting procedures to process the financial data I will express no opinion on whether the financial statements and other financial information produced by us, presents a true and fair view.
Your rights and obligations under taxation laws
You have certain rights under the taxation laws, including the right to seek a private ruling from the Australian Taxation Office or to appeal or object against a decision made by the Commissioner. If relevant, I will provide further information to you concerning your rights under the Australian taxation laws during the term of this engagement.
It is your obligation to provide me with all information that you reasonably expect will be necessary to allow me to perform work contemplated under this engagement within a timely manner or as requested. This includes providing accurate and complete responses to questions asked of you. Inaccurate, incomplete or late information could have a material effect on my services and/or my conclusions.
You also have certain obligations under the Australian taxation laws, such as the obligation to keep proper records and the obligation to lodge returns by the due date.
My obligation to comply with the law
I have a duty to act in your best interests. However, the duty to act in your best interests is subject to an overriding obligation to comply with the law even if that may require us to act in a manner that may be contrary to your interests. For example, I could not lodge an income tax return for you that I knew to be false in a material respect.
I also have an obligation to ensure that I manage conflicts of interest as they arise. In this regard, I have arrangements in place to ensure that I manage potential or actual conflicts of interest. The effective operation of these arrangements depends, in part, on you complying with your obligation to disclose any potential conflicts of interest to me.
Unless otherwise stated, my obligations are based on the Australian tax law in force and the practice of the Australian Taxation Office applicable as at the date of this letter.
My advice and/or services will be based on Australian taxation law in force at the date of the provision of the advice and/or services. It is your responsibility to seek updated advice if you intend to rely on my advice at a later stage. I note that Australian taxation laws are often subject to frequent change and my advice will not be updated unless specifically requested by you at the time of the change in law or announced change in law.
I will not disclose any information relating to your affairs to any third party without your consent, unless required by law. You may provide me with permission to disclose your confidential information in certain circumstances, or place conditions on the disclosure of certain confidential information. If you do so, I will have permission to disclose the relevant information accordingly, in the performance of my services, unless you instruct me otherwise in writing.
Professional fees will generally be charged at a fixed rate, as quoted, on a per project basis. Professional fees for services outside the scope of a fixed quotation will be charged at an hourly rate of $300 plus GST.
Goods & services tax (GST)
The above rates excludes GST. Any GST that relates to a taxable supply by us to you is payable by you and is additional to these rates.
At times it may be necessary for me to pay disbursements on your behalf, I will attempt to seek your authority prior to making any payment on your behalf. Disbursements that I incur on your behalf or for your benefit will be disclosed on my invoices and are to be reimbursed. Disbursements may include such things as charges for courier fees, legal and/or other opinions, and other expenses that I may incur in carrying out my engagement. Naturally, I will use my best endeavours to keep the disbursements to a minimum. You will be entitled to the input tax credits (if any) referable to the disbursements that are incurred.
Payment of accounts
For your convenience I invoice each of your legal entities separately. A valid tax invoice will be issued to each entity at the commencement or completion of each project as specified in the quotation, or at other times I deem appropriate. Invoices will include professional fees, GST and disbursements. Payment of these invoices is due no later than seven days from the date of issue unless otherwise agreed. You will be jointly and separately liable to pay my invoices.
Should you have any queries relating to an invoice, please raise them with us within seven days of receiving the invoice.
In the event that my invoices are not paid when due, I may elect:
- not to do any further work for you until all unpaid accounts are paid in full;
- to retain custody of any of your papers, documents or files until all unpaid accounts are paid in full; and
- to charge interest at the rate prescribed under the Penalty Interest Rates Act 1983 (Vic) on any amount outstanding one month after the date on which the account is given to you and until payment is made.
Termination of my engagement
You may terminate my engagement, at your discretion, at any time. I may terminate my engagement if, in my reasonable view, our working relationship is unsatisfactory or if you breach any of the terms of my engagement. Termination will not prejudice the antecedent rights of either party or negate your obligations to us which accrue up to your termination.
In this letter a reference to “I” means Allied Business Accountants and any related related companies, trusts, and persons and “you” means the incorporated entity subject to registration in Australia and any related companies, trusts, and persons , and any other entities for whom I do any work at the request of any of them.