Standard terms of engagement
Terms of Engagement
This brochure confirms our mutual understanding of the terms of engagement agreed with you and PKF New England North West Pty Ltd (PKF) and the nature and limitations of the services we provide. This brochure sets out the obligations of each party. The specific scope of the engagement may also be agreed in writing in a separate engagement document signed by both parties. This brochure forms part of that agreement and is to be read in conjunction with that document.
Purpose, Scope and Output of the Engagement
This firm will provide tax and accounting services which will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB). The scope of our engagement may include;
(a) Preparation and lodgement of income tax returns for you, your family and your associated entities;
(b) Preparation and lodgement of Business Activity Statements;
(c) Preparation of special purpose financial statements for taxation purposes;
(d) Review of taxation affairs;
(e) Advice in relation to tax accounting and business matters generally.
Our advice will cover income tax and goods and services tax. Unless specifically requested, it will not cover any other taxes, such as fringe benefits tax, capital gains tax, stamp duty, land tax, payroll tax, or international taxes.
The scope of our engagement will be limited to performance of the services listed above. The extent of our procedures will be limited exclusively for this purpose. As a result, no audit or review will be performed and, accordingly, no assurance will be expressed. Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. However, we will inform you of any such matters that come to our attention.
The provision of any additional services will be agreed and documented in a separate engagement letter.
We are not licensed to provide financial products advice. As such we will not make recommendations regarding financial products. We are able to refer you to relevant licensed professionals who can provide financial and advice under their Financial Services license.
Our professional services are conducted and financial statements, tax returns or other documents requested will be prepared for distribution to the relevant specific organisation or party for the purpose specified in the report or as agreed. We disclaim any assumption of responsibility for any reliance on our professional services to any party other than as specified or agreed, and for the purpose which it was prepared. Where appropriate, our report will contain a disclaimer to this effect.
Responsibilities
In conducting this engagement, information acquired by us in the course of the engagement 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.
We wish to advise that our firm's system of quality control has been established and maintained in accordance with the relevant APESB standard. As a result, our files may be subject to review as part of the quality control review program of Chartered Accountants Australia and New Zealand (CA ANZ) in 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.
Clients are required to arrange for reasonable access by us to relevant individuals and documents, and to be responsible for both the completeness and accuracy of the information supplied to us. The provisions of the Income Tax Assessment Act place the responsibility for the correctness of tax returns, including compliance with the substantiation provisions with the taxpayer.
Third Party Contractors
PKF use the services of third party contractors in Australia or Internationally to assist us to perform some of the services we are engaged to do. You and your Associated Parties authorise PKF to disclose information relating to each relevant entity’s affairs to such third party contractors as required when the third party contractor is engaged to perform such work.
Fees
Our fees are based on all professional and non-professional time spent to complete the tax and accounting services as agreed. We have professional staff at a variety of levels which will ensure your needs are met with maximum efficiency. To maintain quality and ensure that fees are charged accurately and reflect the value of work completed, our Directors supervise and control all work.
Where appropriate, professional staff with a lower charge rate will be used under the supervision of senior staff.
Details of our charge rates are included in our Professional Services Guide. This is available on request.
If areas of deficiency are detected in the information supplied, additional costs may be charged to rectify the information.
Our invoices are rendered on a regular basis as the work progresses and we issue detailed statements outlining all work performed. Our trading terms are 14 days from the date the invoice is received and payment can be made by cheque, credit card, EFTPOS, direct bank crediting and deductions direct from refunds. We may agree alternate billing terms with you in writing.
You may terminate our engagement at any time. If you terminate our engagement after commencement, a tax invoice will be sent to you covering our time cost charges and related expenses incurred up to the time of termination.
PKF reserves the right to charge interest on overdue amounts at an annual rate of 2 per cent over the Reserve Bank of Australia target rate on the date payment is due and any costs of collection of the overdue amount and interest.
If PKF is required (through a subpoena or any other legal process) to produce documents or attend court in relation to the Services for judicial or administrative proceedings to which PKF are not a party, the Client shall reimburse PKF at standard billing rates for PKF’s professional time and expenses including reasonable legal fees, incurred in responding to such requests.
Ownership of Documents
All original documents obtained from the client arising from the engagement shall remain the property of the client. 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, ELDs and associated tax schedules. Ownership of these documents will vest with you. All other documents produced by us in respect of this engagement will remain the property of the firm.
As part of the delivery of our services, you consent to us communicating with you or on your behalf electronically. If any report or correspondence is sent electronically, PKF will not be responsible for any unauthorised copying, interception, interference or delivery failure of the transmission. PKF also does not warrant that the electronic transmission is virus free or will not harm the Client's computer systems.
In addition, you consent to us storing your financial information electronically on either secure local or cloud-based services as required.
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. The firm has also established dispute resolution processes.
Limitation of Liability
Our liability may be limited by a scheme approved under Professional Standards Legislation. Further information on schemes is available from the Professional Standards Councils’ website www.professionalstandardscouncil.gov.au
Audit Insurance Protection Policy
PKF has a Tax Audit Insurance Policy with Agile which is an additional assurance measure we have in place for all current clients. The policy will pay up to $20,000 in Professional fees incurred on your behalf to respond to any form of tax review or audit by a Government agency. As the cover automatically applies to all clients, the cost of the policy premium is shared with a nominal standard disbursement charge applied to your account. Insurance coverage does not apply for any return lodged more than three months after the due date and there are other policy exclusions. A copy of the Policy Document is available from our office upon request.
Guarantees for Payment
Any invoices and statements that are addressed in the entity’s name that being in either a company, trust, self-managed super fund, partnership, or non-profit organisation, 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 PKF New England North West Pty Ltd 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 organisation 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 non-profit organisation 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 non-profit organisation 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 recover cost incurred in pursuant of our debt.
Confirmation of Terms
Acceptance of our services in conjunction with this information brochure indicates that you understand and accept the arrangements described herein. This information will be effective for future engagements unless we advise you of any change.
Disclaimer
PKF New England North West Pty Ltd is a member firm of the PKF International Limited family of separately owned firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.