Terms of Engagement

This work will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB).

In providing these services, it is agreed that we will not be undertaking any independent audit of the financial statements or 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. The financial statements prepared will contain an appropriate disclaimer that identifies the extent and limitation of our role.  We are entitled to rely on the records provided as being both accurate and complete.

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 the income tax returns.  The legislation provides the basis for this and may require us to make further enquiries of you or other nominated representatives of the entity 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.

From time to time, you may require additional work to be completed other than what is covered by this engagement and request us to complete this for you. This will represent a separate engagement for which a separate engagement letter will be issued.

A separate engagement letter will be issued for any audit engagements, specific to that entity.

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 the reliability, accuracy and completeness of the accounting records are your responsibility and that you have disclosed to us all material and relevant information. Our involvement in 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. It is the taxpayer’s responsibility to keep those records for five (5) years.

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 four (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 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 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.

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.

Privacy

At all times Bizally is committed to protecting your privacy. Any personal information held by Bizally for financial, accounting, audit, education or general mailing purposes will only be used by Bizally to support your relationship with us, and to ensure you receive the most appropriate range of information and services.

We will collect personal and other information about you in connection with the Engagement and may share that information between our member firms or disclose the information to third parties where we consider it necessary to provide the Services or where we are required to do so by law.

We may also obtain a credit report or credit reference from a credit reporting agency in relation to you. We may conduct other relevant searches and reports that may be available from statutory and government regulated bodies without reference to you.

Unless you inform us otherwise, by engaging us, you consent to the collection and disclosure of personal information on these terms and to us obtaining a credit report on you if we decide it is appropriate to do so.

Our files may be subject to review as part of the quality control review programs of the Institute of Chartered Accountants in Australia and New Zealand, and CPA Australia which monitor compliance with professional standards by their 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 these programs. The same strict confidentiality requirements apply under these programs as apply to us.

We may collect Personal Information about your representatives, your clients and others when we provide services to you. If we do, you agree to work with us to ensure that we both meet the obligations that we each may have under the Privacy Act 1988 (Cth) (as amended) (Privacy Act). The obligations may include notifying the relevant person to whom the personal information relates who we are and how we propose to use their personal information. Where you have collected personal information, you confirm that you have collected the personal information in accordance with the Privacy Act, that you are entitled to provide this personal information to us and that we may use and disclose the personal information for the purpose/s we provide our services to you. We will handle personal information in accordance with the Privacy Act.

Involvement of Others

Where, as part of our engagement, the services of an external consultant or expert are required, an estimated cost and timeframe and involvement will be provided to you for your approval.

Outsourced Services

We may, as required from time to time, outsource parts of your work to other professional service providers who are appropriately qualified.

Acceptance of our services in conjunction with this engagement document indicates your acceptance of the use of outsourced services.  Bizally will take reasonable steps to ensure that the Australian Privacy Principles are complied with.

Storage of Personal Information

Bizally utilise cloud based software systems as part of our service delivery to you. At all times, your data is under our control and we have taken all reasonable measures to protect your privacy.

Ownership of Documents

All original documents obtained from you arising from the engagement shall remain your property.  However, we reserve the right to make a reasonable number of copies of the original documents for our records.

Our engagement will result in the production of Income tax returns, financial statements and any other relevant documents. 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, subject to any statutory obligations.  The firm has a policy of exploring a legal right of lien over any client documents in our possession in the event of a dispute.

Document Retention

You agree that we shall have the right to retain copies of documents relating to the Engagement after the Engagement has ended. Our document retention policies are in accordance with Australian statutory requirements as follows:

• Meeting of members and Directors – five years from the date of the last entry.

• Financial records and audit files – seven years after the date of the Directors’ report or, where an audit has been conducted, the auditor’s report.

• Taxation records – five years after the date on which they were prepared or obtained.

• Superannuation Fund records – ten years after the auditor concludes the audit or review of the financial statements.

Thereafter, unless separate arrangements have been made, we may destroy or erase the documents or papers without reference to you.  All documents and records created and/or produced by us during the course of our Engagement (except where provided by law) and documents addressed to us are the property of Bizally. Bizally in every respect claims Copyright in that regard.

Treatment of tax refunds

Any tax refunds owing will be directed to the bank account nominated by you. The ATO will be advised of your nominated account for the payment of

refunds.

Fees

Please note that advice and research undertaken during the year is not included in our quotes and will be billed separately.

Our fees, plus direct out-of-pocket expenses may be billed as work progresses. Our fees assume that the source material you provide to us is reliable and useable to complete the engagement.  Where there is uncertainty regarding the source material, or the tax or accounting treatments used, then we will raise these issues with you.  Rectification of these issues is not included in our fee estimates and will be invoiced in addition to our fee estimates.

Our fees & rates may change from time to time. The new rates will apply from the date of the change

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.

Payment of all accounts is required by the due date, being a date stipulated by Bizally. Any expenses, costs or disbursements incurred by Bizally in recovering any outstanding monies including debt collection agency fees and solicitor’s costs shall be paid by you, providing that those fees do not exceed the scale charges as charged by the debt collection agency or solicitor.

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.

Fees for clients on a Fixed Price Agreements

Payment is required by Direct Debit Authority either from your nominated bank account or credit card.  This option allows you to set and forget your regular payments for the period of your fixed price agreement.

We will deduct our fixed price amount from your nominated account or credit card in arrears on the dates agreed on.

Terms of Payment

Our terms for payment are 14 days from the date of our fee invoice. Any queries relating to our fee invoice must be raised within 7 days from the date of the fee invoice. We may charge interest on the amount payable under each fee invoice that is not paid within 14 days of the date of the fee invoice. Interest will be calculated on the daily balance which is unpaid from time to time until the date of payment.

You may be required, at Bizally’s absolute discretion, to pay on a full indemnity basis any, or part of Bizally’s costs and expenses associated with ensuring payment of any debt due by you to Bizally, including, but not limited to, commission and fees payable to a mercantile collection agency, solicitor, or the like.

We will direct our fee invoices to the persons or entities to which / whom the Client Services Agreement is addressed. However, if instructions are received from persons or entities other than the persons or entities to whom the Client Services Agreement is addressed and our fee invoices are not paid within the time provided, we may recover payment of invoices from any persons or entities from whom instructions are received on the basis that such instructing persons or entities are jointly and severally liable for the payment of our fees.

If at any time a payment is not made as required, we may suspend all further services until we receive payment or acceptable alternative arrangements are made. Alternatively, while services are suspended, we may stop acting in the matter.

If we do stop acting because of non-payment of our fee invoices, all our fee invoices up to that date must be paid.

Until our fee invoices are paid in full, we may and usually will retain your documents, records and other property in our possession. We may report your default to a credit reporting provider.

Goods and Services Tax (GST)

Our fees are quoted exclusive of GST. To the extent that we consider that the supply we make is subject to GST, GST will be charged in addition to the fee quoted and is payable at the same time and in the same manner as the fee quoted.

We will also charge GST on any expenses and/or disbursements that we incur in relation to this Engagement, except to the extent that we incur them as agent on your behalf. If we incur any expenses and/or disbursements as your agent on your behalf, we will charge you the GST inclusive expenses and/or disbursements, and provide you with sufficient information to enable you to claim an input tax credit (if applicable).

Period of Engagement

This engagement letter covers the current and future financial years unless there are changes to our engagement terms or to the nature of the engagement changes.  In this case, we will issue you with a new engagement letter. The fees for successive years will be agreed with you in advance of work commencing. These arrangements will be effective for future years unless we advise you of any changes.

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.