ENGAGEMENT TERMS
These are the Terms of Engagement (“Terms”) between Leader Accountancy (“We”) ABN 12 162 092 980 and You. This Agreement is constituted by these Terms and any other later document that we advise you becomes part of or varies this Agreement. These Terms confirm our understanding of the nature and the limitations of the services we will provide.
SCOPE OF OUR SERVICES
The services provided will be conducted in accordance with the professional and ethical standards issued by the Accounting Professional & Ethical Standards Board, the Tax Practitioners Board, and the applicable taxation laws.
We will not undertake an 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. 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 by you 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. The legislation provides the basis for this and may require us to make further enquiries of you from time to time. Where possible, we will endeavour to identify the information required in advance.
Our work cannot be relied upon to disclose irregularities, including fraud, other illegal acts and errors that may occur. For any audit engagements, a separate engagement will be issued specific to that entity. This engagement is limited to the scope of work. 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. Typical areas of additional assistance include tax advice such as advice and assistance with structuring or restructuring your business. This will represent a separate engagement for which a separate engagement letter will be issued.
Any advice provided is only an opinion based on our knowledge of you and your particular circumstances.
OUTSOURCED SERVICES
We may involve third party contractors or outsourced service providers in providing various aspects of your accounting work. These services may include:
• Accounting file preparation and/ or Data entry into our accounting systems
• Auditing of accounts (including Self-Managed Super Funds)
• Office administration
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 we, your accountants, will be required to take reasonable steps to ensure that Australian Privacy Principles are complied with by the overseas recipients of the Personal Information.
USE OF CLOUD COMPUTING SERVICES
We use Xero (a cloud accounting system), Xero Practice Manager (a cloud practice management system), Xero Tax (a cloud tax return preparation system), BGL Super (a cloud-based super fund accounting and administration system), Windows 365 (for safe remote work environment), Office 365 (a cloud email and calendar system, CAS360 (a cloud company record management system), 1Password (Safeguard all our passwords), Odoo (manage CRM, Events, and Engagements), and FuseSign (a cloud electronic signature system). These cloud computing systems store files on remote servers operated by third parties, including the use of hosting providers in the Australia.
There is the ability for you to act as the Subscriber for Xero Business Edition subscriptions and to "invite" us into that subscription as an "invited user", rather than having us act as the Subscriber to that subscription. Xero has different user roles, and in particular, the Subscriber to a Xero subscription has the ability to control access rights to a Xero subscription.
If we are the Subscriber for your Xero Business Edition, we will always give you full access to your Xero subscription, including if the business relationship between us terminates or if there is a dispute between us. If you transfer your business to a new accountant, you will need to provide us with the name and email address of your chosen new Xero Subscriber for us to transfer your Xero subscription. We are bound by the Xero Partner Code of Conduct. This Code contains dispute resolution procedures and how your access to the Xero subscription will be maintained in the event of a dispute (including relating to non-payment of our fees) between us and you.
STORAGE OF PERSONAL INFORMATION
By agreeing to this engagement and accepting these services you acknowledge and agree that your personal information may be stored overseas.
PERIOD OF ENGAGEMENT
This engagement will start when you sign and return to our office the attached Authority to Proceed and make the specified upfront payment as listed on the attached Fee Proposal. We are responsible for the tax periods set out in the scope of services. We will not address earlier periods unless you expressly ask us to do so.
RESPONSIBILITIES
In conducting this engagement, information acquired by us during the engagement, including information relating to your affairs whether it belongs to you or not or is provided by you or not, is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required or allowed for by law, or with your express consent.
The recent changes to Section 225 (and 360) of APES 110 on Responding to Non-Compliance with Laws and Regulations (NOCLAR) requires us to report a non-compliance with laws and regulations or acts or omission or commission, intentional or unintentional by a client or by those charged with Governance, by management or by other individuals working for or under the direction of a client which are contrary to the prevailing laws or regulations. If we decide that the disclosure of NOCLAR to the appropriate authority is the correct course of action, then such a disclosure will not be considered a breach of confidentiality under our code of ethics.
We wish to draw your attention to our firm’s system of quality control which has been established and maintained in accordance with the relevant APESB standard. Thus, our files may be subject to review as part of the quality control review program of the CPA Australia, which monitors compliance with professional standards by its members. We advise you that by accepting our engagement 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.
PRIVACY ACT
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.
YOUR DISCLOSURE AND RECORD KEEPING OBLIGATIONS
You are required by law to keep full and accurate records relating to your tax affairs.
It is your obligation to provide us with all information that you reasonably expect will be necessary to allow us to perform work specified under this engagement within a timely manner or as requested. This includes providing accurate and complete responses to questions asked of you by us within 10 working days. Inaccurate, incomplete or late information could have a material effect on our services and/or our conclusions and may result in additional fees.
You are also required to advise us on a timely basis if there are any changes to your circumstances that may be relevant to the performance of our services. Specifically, if any subsequent event results in the information you provided to us being inaccurate, incomplete or misleading, then you are obliged to advise us as soon as possible. We take no responsibility to the extent that our advice is inaccurate, incomplete or misleading because it is based on inaccurate, incomplete or misleading information being provided to us.
By accepting the terms in this Agreement, you will be taken to have agreed that the performance of our services is dependent on the performance of your obligations relating to disclosure and record keeping.
The Taxation Administration Act 1953 contains specific provisions that may provide you with "safe harbours" from administrative penalties for incorrect or late lodgement of returns if, amongst other things, you give us "all relevant taxation information" in a timely manner. Accordingly, it is to your advantage that all relevant information is disclosed to us as any failure by you to provide this information may affect your ability to rely on the "safe harbour" provisions and will be taken into account in determining the extent to which we have discharged our obligations to you.
You are also required to advise us if you become aware of any conflict of interest or potential conflict of interest. Generally, a conflict of interest is any event which may result in us becoming unable to remain objective in the performance of our services to you. Some examples of events which could give rise to a conflict of interest or potential conflict of interest during this engagement are changes to your business circumstances, events affecting your family (e.g. death and/or marriage breakdown) or a legal action commencing against you.
In relation to your financial records, you will specifically be responsible for:
· Transaction entries into your business computer records
· Coding all deposits and payments in accordance with the agreed Chart of Accounts
· Reconciling the Bank Accounts on a monthly basis
· Obtaining and retaining sufficient records to substantiate claims made for income tax deductions
· Retaining copies of all financial records for a period of 5 years
· Providing to us all financial information requested within 10 working days of our request
Please note that if you do not provide us your financial information properly reconciled and, in the format, requested by us, any up-front or Fixed Quotes we have provided to you will not be applicable and the cost of our services will be higher.
YOUR RIGHTS AND OBLIGATIONS
UNDER THE TAXATION LAWS
The Tax Agents Services Act 2009 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 responsible for making all relevant information available to us in a complete and timely manner.
· Australia’s income tax and indirect tax system is based on a self-assessment. The Commissioner is entitled to rely on any statements made. Where those statements are later found to be incorrect, the Commissioner may amend your assessments and, in addition to any tax assessed, you may also be liable for penalties and interest charges. The period of review is up to four years. Where the Commissioner forms an opinion of fraud or evasion, there is no limit for amending assessments.
· You are responsible for the accuracy and completeness of the particulars and information required to comply with the various taxation laws. We will use the information supplied in the preparation of your returns.
· You have an obligation to keep proper records that will substantiate the taxation returns prepared and satisfy the substantiation requirements of the various tax laws for at least 5 years. Failure to keep such records could result in claims being disallowed, additional tax being imposed, and the imposition of penalty or general interest charges.
· 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 that may exist.
We are bound by the Tax Agents Services Act Code of Professional Conduct which includes a duty to act lawfully and in the best interests of our clients, ensure the services we provide are provided competently, maintain our knowledge and skills, take reasonable care in ascertaining the state of your affairs where it is relevant to the work we are completing, and take reasonable care to ensure the tax laws are applied correctly.
OUR OBLIGATION TO COMPLY WITH THE LAW
We have a duty to act in your best interests. However, The Tax Agents Services Act 2009 Code of Conduct prohibits us from making a statement to the Tax Commissioner or other government agency that we know, or ought to know, is false, incorrect or misleading, or incorrect or misleading by omission. If we become aware that a statement is materially incorrect, we are obligated at law to either correct it, or advise you that the statement should be corrected. If the statement is not corrected within a reasonable time, we are obligated to report this misstatement to the relevant authority.
Where we suspect there may be non-compliance with laws or regulations, we are required under APES 110 issued by the Accounting Professional & Ethical Standards Board to consider this matter. This may involve making further enquiries, considering the position, and taking what we consider to be appropriate actions, with the objective being to rectify, remediate or mitigate the consequences of the non-compliance. This extends to a public interest duty as defined by APES 110.
We also have an obligation to ensure that we manage conflicts of interest as they arise. In this regard, we have arrangements in place to ensure that we manage potential or actual conflicts of interest. The effective operations of these arrangements depend, in part, on you complying with your obligation to disclose any potential conflicts of interest to us (as mentioned previously).
Our advice and/or services will be based on Australian Taxation Laws 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 our advice at a later stage. We note that Australian Taxation Laws are often subject to frequent change and our advice will not be updated unless specifically requested by you at the time of the change in law or announced change in law.
OWNERSHIP OF DOCUMENTS
All original documents obtained from you arising from this engagement will remain your property. However, we reserve the right to make a reasonable number of copies of the original documents for our records.
Our engagement may result in the production of Financial Statements, Income Tax Returns, Super Fund Documents, and other electronic documents or files which will be supplied to you. Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain our property.
We will exercise a legal right of lien over any of your documents in our possession in the event of a dispute between us. We also have established dispute resolution processes, details of which are available on request.
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 Council’s website: http://www.psc.gov.au
In the event that the entity invoiced by us for our services is unable to discharge its liabilities to us, then the entity’s Directors or Trustees agree to personally indemnify us for any such liability.
INVOLVEMENT OF OTHERS
Where, as part of this 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.
PAYMENT TERMS
In the event of you being in default of your obligation to pay us within the payment terms as listed in the attached Fee Proposal and Authority to Proceed and the overdue invoice(s) are then referred to a debt collection agency and/or law firm for collection and we are charged commission and/or disbursements and/or legal fees, you agree that you will be liable to pay as a liquidated debt to us any commission, disbursements and legal fees payable by us.
Our payment terms are: Either upfront payment is required as listed on the attached Authority to Proceed or Payment due in full for all other engagements 7 days from issue of Invoice. If the amount payable on the Invoice is not paid within 30 days of the date of that Invoice, then interest will be payable by you on the total unpaid amount calculated 30 days from the date of the Invoice until the actual date of payment at the rate of 24% per annum calculated daily.
Payment in full must be made before we lodge your Tax Returns with the ATO.
If you decide to leave Leader Accountancy and appoint another accountant, then we will rule off the work-in-progress at that point in time that you notified us of your departure or that your new accountant provides us with an ethical letter, and we will issue a final fee for the balance of work-in-progress at that point. This may be work that you were not made aware of that we were undertaking, however for practical reasons we do not advise clients of every instance that we work on their files, if the work is minor and ancillary to complying with the Australian Taxation Office requirements and other requests that we may have (banks, requests for finance applications, etc.) This does not diminish the fact that the work was undertaken on your behalf and you also have a responsibility to settle this account before any records or information is provided to your new accountant.
INFORMATION WE ARE REQUIRED TO DISCLOSE TO YOU
As a Tax Agent, our work for you is performed in accordance with the Tax Agent Services Act 2009. Under this Act, the Tax Agent Services (Code of Professional Conduct) Determination 2024 requires that we make the following disclosures to you:
1. The Tax Practitioner’s Board maintains a register of Tax Agents and BAS Agents. You can access and search this register here: https://www.tpb.gov.au/public-register
2. If you have a complaint about our Tax Agent services, you will need to contact your Accountant in the first instance with details by email. If they are unable to resolve your complaint within 3 business days, please contact Jerry Zhao Director by email. Your complaint will be investigated by the Director. We will provide you with an email acknowledgement of receipt of your complaint and our understanding of the circumstances. The email will inform you that we will attempt to resolve your complaint within 14 days and will outline the dispute resolution process. If you are unhappy with the outcome that we propose to you, you can then make a complaint to the Tax Practitioners Board (TPB) using the link listed above. The TPB will send you an email to acknowledge the receipt of your complaint and review and risk assess your complaint. If you are unhappy with how the TPB has dealt with your complaint, the above link includes details about your review rights and who can further assist you.