Wednesday, 28 May 2014
David and Kerrie Test
Test Sample Pty Ltd Trustee
Test Super Fund
197 Smith Street
Parramatta NSW 2150
Dear David and Kerrie
Engagement of our services
Further to discussions, we are pleased to provide our terms of our engagement. We act in the best interests of our clients at all times and to provide the highest level of professional services.
The nature of the engagement is as set out below
Analyse, discuss and make recommendations regarding your accounting records and financial affairs;
Prepare financial and other statements as requested and required by authorities;
Prepare and lodge company, trust, business, superannuation and personal income tax returns, review assessments and advise on appeal procedures where necessary;
Complete compilation of reports in accordance with the NIA’s Pronouncement 5 “Financial Reports” if required (Company and Trust reporting only)
Provide support where necessary
Advise clients in relation to circumstances surrounding FBT issues if and when they arise
Generally to assist financially if and when required; including providing directions to become financial secure in preparation for retirement
Comply with necessary legislation requirements, including capital gains, fringe benefits, income tax and Goods and Services Tax
Scope of work
Subject to any agreement to the contrary, the work is limited to the above and does not include specific advice, auditing or any other work, unless specifically noted in the client’s engagement letter.
Knowledge and Skills
While the work, as defined, is within our knowledge and skills, any changes to the work may necessitate making new arrangements with the client.
Professional Fees and Payments
All professional fees for the services provided to you will be based on the time and degree of skill and acumen required to complete the tasks required, including out of pocket expenses and statutory charges, unless otherwise agreed between the parties. A copy of our fixed charges is attached together with our hourly rate for work completed outside the scope of fixed items.
Any estimates for the cost of service are only an estimate and the actual cost may vary due to unforeseeable problems and delays that occur through third persons or deficiencies in documentation.
Terms of Payment
Our terms of payment are strictly 14 days from the date of each invoice. We will provide you with an itemised account of professional fees, costs and disbursements on all invoices. Where accounts are outside our normal trading terms, an account management fee is charged with overdraft interest rates per month. This charge will only occur where arrangements for time payment have been made and not adhered to, or where accounts are outside our normal trading terms.
Nonetheless, if accounts fall outside of our normal terms of trade, directors/officer bearers provide to our accounting firm the absolute right to clear any Australian Taxation Office (‘ATO’) refund cheque, relating to any director/office bearer/shareholder, through our trust account and deduct our fees.
If we are instructed by the client to complete work on their behalf ‘after the receipt of our letter of appointment’ then we will concur that the client has accepted our terms of engagement and is responsible for all accounts rendered from the date of this letter of appointment.
Conflict of Interest
If during the engagement the client becomes aware of any conflict of interest or potential conflict of interest or there is any change of circumstances that may result in a conflict, the client is duty bound to disclose this information to us.
There are certain events that can give rise to a conflict of interest between parties that we may, or may not, act for. These can include the death of one party, matrimonial dispute or breakdown as well as litigation (threatened or actual) or changes to the nature or structure of the client’s business or business relationships within and outside that structure.
Disclosure of Documents and Material
The client must provide all information and documents relevant to the proper performance of the work at the outset of the engagement and during the engagement. This is included, but not limited to, promptly advising us of anything that occurs subsequent to rendering information where circumstances have made this information incorrect, misleading or unreliable. The client must provide all relevant material and information that impinges on accuracy of the work undertaken in respect to taxation returns and financial reports or any other material or reports made available to any authority, private sector firm or any organisation.
Tax Agent must take reasonable care
The client must provide all information and documentation that is required to be taken into account in applying the taxation laws. A Tax Agent must take reasonable care and apply taxation legislation to each transaction in the confinements of the law. The client’s responsibility is to provide the information that relate to these transactions. Any failure by the client to provide all such information and documentation, either voluntarily or by answer to ATO questions, may affect the client’s ability to access the safe harbour provisions that can be taken into account with assessing the client’s taxation liability under the law.
The Tax Agent’s obligations under this principle are also limited to the extent of any disclosures by us in this letter of specific specialization, skills or lack thereof, or other limitations.
Disclosure of other fees and commissions
We do not accept any fees and commission directly from other sources relating from our service, however, if the situation did arise, we will fully comply with any statutory requirements in relation to such matters. (Note: currently we have commissions being received from financial institutions in relation to any loans arranged on behalf of our client. These do not impede on our clients repayments or capital borrowings whatsoever and will be disclosed at all times)
Documents
Before lodging documents to any statutory body, we seek clients’ approval. This may come in the form via the internet, verbally by telephone or in writing. Furthermore, we shall endeavour to lodge documents by the due dates, provided all information and documentation signed are received within 30 working days prior to date to allow adequate time for the preparation and lodgement of the documentation.
On the receipt of all relevant tax file number, date of birth, address and other personal information provided in the course of registering our tax agency with the ATO is taken as providing the client’s digital signature to us.
Duty to comply with the law
We will act in the best interest of the client, however, we must also act within the confinements of the law, even if this is contrary to the interests of the client. We are duty bound under the Tax Agents Service Act 2009 to comply with taxation legislation, rulings and determinations. Furthermore, we must comply with certain statutory notices from the ATO that may require the payment of money we are holding on the client’s behalf, or the production of documents or information.
Client’s rights and obligations
The taxation laws make certain provisions available to taxpayers where decisions made by the ATO can be challenged. There is a requirement on taxpayers to keep proper records in respect to the transactions undertaken during the course of a financial year. We will keep the client informed of specific rights and obligations under taxation laws that become relevant from time to time during the course of the work we perform for you.
Responsibility for Accounting and Internal Control Systems
We advise that the responsibility for the maintenance of a business accounting system and internal control systems rests with the client, including the protection of and prevention against fraud. You will be responsible for the maintenance and keeping of books of account. If any material weakness in the accounting system or internal control systems comes to our notice, we will advise accordingly.
It is important to remember that the client is personally responsible for the information contained in any statutory return and that you (client) must retain all necessary supporting documentation to substantiate your transaction. We do not take responsibility for any failure on your behalf to maintain adequate records.
Ownership of Documents
The final financial statements, tax return and any other documents that we are specifically engaged to prepare, together with any other original documents given to us, shall remain your property. Copies of all reports and files are given to all our clients each year on the completion of that year’s work. Any other documents brought into existence by such as our working papers remain with us.
Lien over Documents
In relation to any subsequent termination of our services, we may invoke a Lien over certain documents held until such time as an outstanding fee, including any legal cost incurred has been paid or other satisfactory arrangements are reached. A Lien is a right to hold certain documents or property until the debt incurred in respect of that property/document has been satisfied. The Lien however does not cover statutory documents (e.g. a Tax Return, BAS or refund cheque)
Discounts
Our invoices are a detailed statement of the work carried out on your behalf, or your specified entity(s). We may, or may not, provide a discount on the work carried out at our own discretion. A discount will apply on a particular invoice where the expression is used ‘exceeds but say’. This phrase specifies that the number of hours to complete the work exceeds that amount being charged on the invoice. In circumstances where our detailed invoice is being disputed by a client we hold the absolute right to revise our detailed invoice and apply the full amount of hours, disbursements, for the work carried out on your behalf, or an entity(s) you are associated with.
Trust Account
We separately account to clients for all money, or any other property received from the client, or for the client other, than money received from the client, in payment of our fees for the services rendered.
Confidentiality of information and documents
Subject to the law, we must not disclose any information relating to your affairs to a third party without the client’s written consent. In circumstances that we need to disclose certain information in the context of carrying on our work, the client gives their unreserved qualification that we can make these disclosures, unless the client otherwise instructs us in writing not to disclose.
Quality Review
As a Fellow of the National Institute of Accountants (NIA) proprietor Michele Glossop is subject to periodic quality assurance reviews (as well as annual audit of our trust account). Unless otherwise advised by yourself, by engaging our firm, you are consenting to your files possibly being part of such a quality review.
Standards
As a Fellow of the NIA in public practice, our proprietors Michele Glossop and Rochelle Massih are subject to the ethical requirements of the NIA and its Investigations and Disciplinary processes. These requirements cover issues such as a Code of Conduct and Ethics, adherence to Accounting and Auditing Standards; requirements to undertake Continued Professional Education and to hold trust money in a Trust Account. Should there be an issue regarding the ethical or business practices of my firm, or myself such matters may be referred to the NIA Investigator. However, as the accounting profession does not have regulated fees, the NIA will not investigate purely fee-based disputes but may recommend the parties seek mediation to resolve such disputes.
Previous Accountant
In some circumstances, as a matter of professional courtesy, and in line with the requirements of the NIA, we may need to inform your previous accountant that we have been engaged by you as your new accountant and to receive from them any outstanding matters and files.
If you are in agreement with above terms of engagement please sign and return the attached duplicate letter to us. To enable you and/or your entity to be attached to our agency, we would appreciate the attached document to be signed giving us authority to act as your agent in relation to tax matters.
If we are instructed to act on your behalf in relation to taxation and accounting matters this agreement will take affect from the above date to which you have agreed to the terms and conditions herein.
Guarantees
Any invoices and statements that are addressed in the entity’s name that being either a company, trust, self-managed super fund, partnership, or nonprofit organization, are the responsibility of the office bearers, directors, trustees, self-managed super fund, members/trustees, or partners, to which each director/office bearer gives their personal guarantee to pay these accounts. The directors, trustees, self-managed super fund, members/trustees, or partners, provide a personal guarantee to Parramatta Accountants & Tax Agents Pty Ltd, or any company, trust, partnership or individual in which the business (accounting, taxation, financial planning and real estate agent) trades to pay any outstanding account that is derived in either their personal name or the name of any company, partnership, trust, self-managed super fund, or non-profit organization that they are either a director, member, trustee or partner. Any partner, director, trustee, member/trustee will be equally and severally liable to pay the accounts of company, trust, self-managed super fund, partnership, or nonprofit organization to which they are involved partial or in full.
Furthermore, the partner, director, trustee, member/trustee will be equally and severally liable to pay the accounts of company, trust, self-managed super fund, partnership, or nonprofit organization including any and all legal cost in pursuing the matter through either a debt recovery agency or solicitor. The amount recoverable will be the full amount of the account less any discounts provided plus the total account of solicitor or debt recovery costs including all court costs. In simple terms the full account of our service will be claimable plus any legal recovery cost incurred in pursuant of our debt.
Should you have any further queries in relation to the above, please do not hesitate to contact me.
Yours faithfully,
Graeme Glossop B.Ec Dip Acc LLM CTA Dip FP(FA)
Accountant / Economist
Wednesday, May 28, 2014
Parramatta Accountants & Tax Agents Pty Ltd
Attention: Graeme Glossop
PO Box 2647
North Parramatta NSW 1750
Dear Graeme,
Re: Engagement of services
I/we have read the terms and conditions as stated in your letter of engagement and I/we understand these and accept them as part of our appointment of your services.
Guarantees
Any invoices and statements that are addressed in the entity’s name that being either a company, trust, self-managed super fund, partnership, or nonprofit organization, are the responsibility of the office bearers, directors, trustees, self-managed super fund, members/trustees, or partners, to which each director/office bearer gives their personal guarantee to pay these accounts. The directors, trustees, self-managed super fund, members/trustees, or partners, provide a personal guarantee to Parramatta Accountants & Tax Agents Pty Ltd, or any company, trust, partnership or individual in which the business (accounting, taxation, financial planning and real estate agent) trades to pay any outstanding account that is derived in either their personal name or the name of any company, partnership, trust, self-managed super fund, or non-profit organization that they are either a director, member, trustee or partner. Any partner, director, trustee, member/trustee will be equally and severally liable to pay the accounts of company, trust, self-managed super fund, partnership, or nonprofit organization to which they are involved partial or in full.
The amount recoverable will be the full amount of the account less any discounts provided plus the total account of solicitor or debt recovery costs including all court costs. In simple terms the full account of our service will be claimable plus any legal recovery cost incurred in pursuant of our debt.
We the undersigned acknowledge that we are personally liable for any debts incurred by a company, trust, partnership, self-managed super fund, or non-profit organization, that is incurred of which we are either a directors, trustees, partners, member/trustee or an associate of the entity.
We the undersigned do therefore pledge our personal guarantee after reading the above ‘Guarantees Clause’
………………………………………………………….
Director, Trustee, Partner, Member/Trustee or Associate
Yours faithfully,
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David Test Date
………………………………… ………………………..
Kerrie Test Date
