Complaints and disputes
All complaints can be made directly to the accountant and/or your adviser. We will acknowledge your complaint within 5 business days and aim to resolve it within 30 days.
Tax Agent Portal
You give permission to the registered tax agent AHR Accounting, Tax Agent No. 262 85 147 to link you in the ATO Online Services for Agents / Tax Agent Portal and to receive ATO correspondence on your behalf. For business clients, you may be required to complete the ATO’s client-to-agent linking nomination before we can act.
Client Verification
Each client is required to be verified by the Tax Agent, or its representative, in line with our professional obligations (including TPB proof-of-identity guidance). You agree to provide the requested identification promptly.
Purpose and scope of the engagement
Our engagement is to attend to the matters outlined above.
The attached schedule lists those business entities and family members included in this engagement letter.
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.
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 you.
Professional fees and payments
Unless otherwise stated in writing, any estimates we provide of anticipated fees, disbursements and charges are indicative only and not binding.
Terms of Trade
Unless other terms are agreed:
- Terms of Trade: payment is due 30 days from the invoice date;
- GST: fees and disbursements are exclusive of GST unless stated otherwise;
- Overdue amounts: we may charge reasonable interest on overdue amounts and suspend services until paid; and
- Disbursements: third-party fees (e.g., ASIC, ATO, registry searches) will be charged at cost.
1. Accounting & record keeping
In undertaking this engagement, it is understood that you will generally ensure that:
- The bookkeeping for all business entities is maintained on a regular basis.
- Reconciliations for bank accounts, debtors and creditors are performed at the end of each month for each of the business entities.
- A stocktake will be performed during the last weekend in June for each entity that deals in trading stock; and
- It is expected that the trial balance of each of the business entities will be completed no later than 31 October.
- For the personal tax returns for you and your family, it is expected that all relevant information will be collated and forwarded to our office by 31 January. We shall detail more specific requirements in respect of the individual tax returns later in this letter.
2. No statutory financial audits are conducted.
You and your employees are responsible for the maintenance of the accounting systems and internal controls for all the business entities, including keeping and maintaining all required books of account. We are not engaged to conduct a statutory audit and will not express an auditor’s opinion on the financial statements.
3. Documentation
Before we lodge any returns on your behalf, we will forward the documents to you for your approval (electronically or in hard copy). We will endeavour to lodge by due dates; if information is provided late, we will use reasonable efforts but are not responsible for ATO/ASIC penalties or interest arising from delay.
Retention: we keep engagement and working papers as required by law (generally 5 years) and then destroy or de-identify them securely. ATO/ASIC may deliver certain notices digitally; by engaging us you consent to receive approvals electronically where permitted.
4. Ownership of documents
The financial statements, tax returns and any other documents which we are specifically engaged to prepare, together with any original documents given to us by you, are your property. We will return originals on request and may retain copies.
Documents created by us (e.g., working papers, draft documents, general ledger files) remain our property.
If our services are terminated (by either party), we may exercise a lien and retain certain documents to the extent permitted by law and professional standards until all outstanding fees are paid. Where copies are requested, reasonable copying/administration charges may apply.
5. Additional Services
Our agreed fee is only for the preparation and lodgement of the accounting and taxation matters detailed above. Any agreed fee applies only to services and advice provided within the scope of our engagement. This fee includes the checking and forwarding of original assessments and original payment notices received from the ATO and ASIC.
Additional services or advice requested beyond scope will be charged separately based on time, expertise and direct costs. ATO/ASIC correspondence beyond standard assessments/payment notices may be treated as additional services.
6. Limitations to advice
Please be aware that:
- Any advice given is an opinion based on our understanding of your circumstances at the time; and
- Tax advice has inherent limitations. Do not interpret an opinion as a statement of fact. You remain responsible for decisions made based on our advice.
7. Third Party Involvement
7.1 We may engage third-party specialists and other practitioners (including cloud/IT providers and outsourced service providers) where warranted to obtain advice you need or to assist service delivery. We remain responsible for the overall service to you.
7.2 We will seek your consent if third-party involvement is likely to exceed a fixed price (if applicable).
7.3 We have outsourcing arrangements with Ascendum Business Services Pty Ltd in India to assist us, including SMSF accounting and compliance work. Acceptance of our services indicates your consent to the use of these outsourced services.
8. Privacy & APP
Some personal information may be disclosed overseas. We take reasonable steps to ensure overseas recipients protect information consistently with the Privacy Act 1988 (Cth) and the Australian Privacy Principles. See our Privacy PolicyPrivacy Policy for details.
Business Activity Statements
As BAS are prepared quarterly and lodged during the financial year, it is not possible for us to review the correctness of all underlying financial information as part of quarterly BAS preparation (annual accounts are prepared at year-end).
Accordingly, for quarterly BAS we will rely on and process the financial information you provide without reviewing primary source documents. We assume that:
- The financial information provided is accurate;
- The information correctly states the GST position (input tax credits and GST payable are correctly recorded);
- You hold the necessary supporting documentation required by the ATO; and
- You hold valid tax invoices/adjustment notes for all expenditure for which an input tax credit is claimed.
If you are unsure of GST treatment or evidence required, we can assist as additional services.
When annual accounts are prepared, discrepancies may be identified between quarterly BAS and the annual financial statements. We will discuss any corrections required and fees for those services.
Financial Accounts
We are engaged to prepare the annual financial accounts of your business, including:
- Profit and loss statement;
- Balance sheet; and
- Notes to the accounts.
This service includes maintenance of charts of accounts for your general ledgers and telephone support regarding how to record specific transactions. The fee also includes the preparation and lodgement of standard ASIC reports (where we are appointed as your ASIC registered agent).
This service does not include one-off accounts for finance applications or similar purposes.
Income Tax Returns
We are engaged to prepare and lodge income tax returns for your business and (if agreed) for you personally. Sufficient source documentation is required to analyse the tax implications of transactions.
For individual returns, you must comply with substantiation provisions of the Income Tax Assessment Acts. We will advise on substantiation requirements (e.g., receipts/logbooks) but we do not audit or verify your records (e.g., motor vehicle logbooks, rental schedules prepared by you or your agent). Review/assistance can be provided as additional services. Templates/checklists we provide are free of charge.
Our fee does not cover ATO reviews/audits/investigations. Significant penalties may apply for incorrect returns—contact us if you are unsure.
Fringe Benefits Tax Returns
If engaged to prepare and lodge FBT returns, source documentation is required to analyse FBT implications. Our fee includes:
- Guidance on collating information for the annual FBT return;
- Telephone advice on basic FBT issues;
- An annual review of ways to reduce FBT where appropriate; and
- Calculation of Reportable Fringe Benefits Amounts for employee payment summaries (including family members employed in your business).
Superannuation
If engaged to attend to compliance work for your SMSF, our work includes:
- Preparation of annual financial accounts for the purposes of the Superannuation Industry (Supervision) Act 1993 (SIS Act);
- Preparation and lodgement of the SMSF annual return. An independent annual audit must be completed before lodgement; trustees must provide fund records by 30 September to enable completion;
- Arranging an independent external auditor (the auditor is not our employee) and including the audit fee in our annual charges; and
- Annual review of superannuation funding requirements.
We recommend the fund deed be reviewed annually by a superannuation specialist. Our engagement does not include legal advice or financial product advice for SMSF investments or retirement planning (these can be arranged separately). Our work does not cover ATO reviews/audits.
Disclosure
You must provide all information and documents relevant to the proper performance of the work at the outset and during the engagement, and promptly advise of any changes that render earlier information misleading or incomplete.
You must tell us about any conflicts of interest or potential conflicts that arise.
The Taxation Administration Act 1953 provides “safe harbours” from certain administrative penalties if, among other things, you give us all relevant taxation information in a timely manner. It is to your advantage to do so.
Confidentiality
Subject to law and professional obligations (including the Privacy Act 1988 (Cth)), we must not disclose your information to a third party without your consent. We may use contractors to assist with your work; by proceeding, you consent to disclosures to the extent required. See our Privacy Policy for more information.
Your Rights and Obligations Under Tax Law
Taxation laws give you rights (e.g., to challenge an ATO decision) and impose obligations (e.g., to keep adequate and accurate records and lodge returns on time).
Duty to Comply with the Law
We will act in your best interests, but we must comply with the law (e.g., responding to certain ATO notices requiring production of documents/information, or payment of funds we hold on your behalf).
Professional Competence
You must provide all information and documentation we should take into account in applying the taxation laws. Failure to do so may affect your ability to access safe harbour provisions and will inform our obligations under the TPB Code of Professional Conduct and APES 110 Code of Ethics for Professional Accountants.
Quality Review
As members of CPA Australia, we are subject to periodic quality assurance reviews. By engaging our firm, you consent to your files possibly being part of such a review (reviewers are bound by confidentiality).
Standards
We aim to provide the highest standard of professional service. If you feel you have not received the level of service expected, please contact us to discuss how the problem may be resolved.
As members of CPA Australia in public practice, we are subject to the ethical requirements of APES 110, APES 305 Terms of Engagement, and other applicable APES standards (e.g., APES 220 Taxation Services). We also comply with the TPB Code of Professional Conduct under the Tax Agent Services Act 2009. We maintain a trust account if required by law and professional standards. The CPA may not investigate purely fee-based disputes but may recommend mediation.
Previous Accountant
As a matter of professional courtesy, and in line with CPA requirements, we will inform your previous accountant that we have been engaged and request transfer of outstanding matters/files. You may refuse, but doing so may delay efficient transfer.
Confirmation of engagement
There are many issues to consider in this engagement. Please review all aspects of this letter to ensure you are satisfied with the scope of our engagement and contact us with any queries.
Liability limited by a scheme approved under Professional Standards Legislation.