This document sets out our terms of engagement and the scope of the work to be performed by us within that engagement.  Please read it carefully. Terms are accepted on signing and payment for tax return/s.

From 1 March 2010 there is a provision of a “safe harbour” protection from penalties in certain circumstances for taxpayers who engage registered tax agents.

To obtain “safe harbour” protection, the legislation requires the taxpayer to provide “all relevant taxation information” to enable accurate statements to be provided to the Australian Taxation Office.

Purpose and scope of engagement including Fees to be charged.

Our engagement is to prepare and lodge your annual income tax returns.

Services will be provided to you on a fee for service basis.

Before we lodge any tax returns on your behalf, we will present it to you for approval and signing.

Work that is performed or disbursements that are incurred which are outside the scope of our engagement will be the subject of additional charge.

Basis of engagement

We expect that all relevant information will be collated and forwarded to our office before 26th October.

If you are late in providing information, we will do our best to meet the time limits, but we will not be responsible for any lodgement penalties you may incur.

As a general proposition we rely upon our clients to provide us with accurate and timely information.  Any rectifying work performed by us on the basis of incorrect or late information will be work which is outside the scope of our engagement and will be charged as additionalservices.

Ownership of documents

The tax returns which we are engaged to prepare, together with any original documents given to us by you, shall be your property.  Any other documents brought into existence by us, including general working papers, schedules and documents, will remain our property at all times.

If our services are terminated (by either party), we shall be entitled to retain all documents owned by you until payment in full of all outstanding fees.

Substantiation of Claims

We will specifically advise as to the requirements of the substantiation provisions relating to your income tax return and of the necessity to obtain acceptable receipts as specifically required by the legislation.  We will not, however, be checking that the requirements of the substantiation provisions have been satisfied.

In addition to the basic information required to complete these tax returns, it is expected that the source documentation will be available to allow this firm to analyse the  tax implications of any transaction that we request to see.  We will not as a matter of course be looking at these documents, the ATO will expect you (and you are required) to have them available before any claim is made in your income tax return.  We may in some circumstances also request to see source documents if a tax issue is particularly contentious. It is also expected that, each person will comply with the substantiation provisions of the Income Tax Assessment Act.

Log Book

This means that we will not be reviewing your log book or any calculations or information you provide us, for example a rental property schedule either prepared by you on spreadsheet or by a property manager.  If you require assistance in completing a log book or preparing any calculations or you would like us to review such work, please discuss this with us.

Confirmation of engagement

The fee for this service does not cover any inquiries or investigations conducted by the Australian Taxation Office.  Substantial penalties apply for an incorrectly prepared income tax return. Audit insurance is available to cover the cost of professional fees in case of an audit or review.   

Please ensure that you are satisfied with the scope of our engagement. 

Contact us if you have any queries about these engagement terms.


Acknowledgment of terms of engagement

We, confirm that we understand and agree to your terms of engagement.

Dated the _______________   day of ______________ 20_____.