Accounting, Taxation, Corporate Secretarial and Business Services Terms & Conditions
Period of engagement
This engagement will be effective upon acceptance of the terms of engagement and will continue until revoked by us or you. This engagement letter will be effective for future engagements unless we advise you in writing of any change.
This engagement letter constitutes a services agreement (Agreement) which sets out the terms and conditions upon which we will provide our Services for you and any associated entity, unless otherwise agreed in writing.
Certified Practising Accountant (CPA)
Arthur Kyriacou & Co. operates under the standards of Certified Practising Accountants in Australia (“CPA”). CPA Australia has issued standards and recommendations regarding the Terms of Engagement (“Agreement”) between accountants and their clients.
This Agreement is prepared in accordance with those standards and recommendations and confirms our understanding of the nature and the limitations of the services we will provide to you.
Registered Tax Agent
Arthur Kyriacou & Co is a registered tax agent under the Tax Agent Services Act 2009 (TASA 2009). As a registered tax agent, we are required to abide by the code of professional conduct and the civil penalty provisions under the TASA 2009.
Registered ASIC Agent
Arthur Kyriacou & Co is a registered ASIC agent under the Corporations Act 2001 (Corporations Act). A registered ASIC agent acts as an intermediary between ASIC and Australian companies, to help companies meet their lodgment obligations under the Corporations Act. A registered agent does not operate on ASIC’s behalf but instead operates on behalf of companies who need to lodge information with ASIC.
Purpose of the engagement
Our firm will be responsible for the preparation and lodgment of the following:
- Annual financial statements
- Annual income tax returns, including estimates of tax and advice about taxation payments
- Company annual review forms and company changes forms
- Minutes of meetings of directors, trustees and shareholders as required
- Activity statements – BAS / IAS
- WorkCover and Payroll Tax obligations, if applicable
- Fringe benefits tax returns (FBT) and any FBT declarations, if applicable
- When requested, advising or instructing staff on the maintenance of the accounting and internal control systems
- Advice as requested from time to time
If we are requested to provide other specific services, they will be the subject of a separate engagement letter and thus a separate fee.
Scope of our services
Arthur Kyriacou & Co will provide the above 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 extent of our procedures will be limited exclusively for this purpose. We understand that an audit of the Financial Statements is not required, and therefore we will not be expressing an opinion as to the truth and fairness of those statements. However, we will inform you of any such matters that come to our attention.
Annual financial statements, taxation returns, and reports 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.
Advice given by Arthur Kyriacou & Co will be based on our knowledge of your particular circumstances and based on Australian taxation law in force at the date of the provision of the advice. Australian taxation laws are subject to frequent changes. Therefore, it is your responsibility to seek updated advice if you intend to rely on our advice at a later stage.
To help us prepare your Financial Statements and Income Tax Returns, you will need to provide us the following, if applicable:
- Up-to-date and reconciled General Ledger/Cash Book (computer records)
- Copies of your Business Activity Statements that were reported to ATO
- Copy of Bank Statements
- Any loan documentations and loan statements
- Details of new assets purchased (including cars for FBT purposes)
- Details of disposal of any assets – property, plant & equipment, investments, etc.
- Completed FBT Questionnaire
- PAYGW summaries
- Listing of superannuation payments by employee
- Other items as requested from time to time
You or your staff will be responsible for maintaining and regularly balancing all books of accounts, and the maintenance of an adequate accounting and internal control system. You also acknowledge that it is your responsibility for the reliability; accuracy and completeness of the accounting records and that you have disclosed to us all material and relevant information.
Our involvement in this type of engagement will not disclose fraud, defalcations or other irregularities which may occur. However, any material weaknesses in the accounting or internal control systems which come to our notice will be drawn to your attention.
Please be aware that:
(a) you are responsible for the accuracy and completeness of the particulars and information provided in relation to taxation services and this responsibility rests with you;
(b) any advice given to you is only an opinion based on our knowledge of your particular circumstances; and
(c) a taxpayer has obligations under self-assessment to keep full and proper records in order to facilitate the preparation of accurate returns.
Any information acquired by us in the course of our engagement is subject to strict confidentiality requirements. Information will not be disclosed by us to other parties except as required or allowed for by law or professional standards, or with your express consent.
Our files may, however, be subject to review as part of the quality control review program of CPA Australia which monitors compliance with professional standards by its members. We advise you that by signing this letter 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. The same strict confidentiality requirements apply under this program as apply to us.
Provision of taxation services
A taxpayer is responsible under self-assessment to keep full and proper records in order to facilitate the preparation of a correct return. Whilst the Commissioner of Taxation will accept claims made by a taxpayer in an income tax return and issue a notice of assessment, usually without adjustment, the return may be subject to later review. Under the taxation law such a review may take place within a period of up to five (5) years after tax becomes due and payable under the assessment. Furthermore, where there is fraud or evasion there is no time limit on amending the assessment. Accordingly, you should check the return before it is signed to ensure that the information in the return is accurate.
Where the application of a taxation law to your particular circumstances is uncertain you also have the right to request a private ruling which will set out the Commissioner’s opinion about the way a taxation law applies, or would apply, to you in those circumstances. You must provide a description of all of the facts (with supporting documentation) that are relevant to your scheme or circumstances in your private ruling application. If there is any material difference between the facts set out in the ruling and what you actually do the private ruling is ineffective.
If you rely on a private ruling you have received, the Commissioner must administer the law in the way set out in the ruling, unless it is found to be incorrect and applying the law correctly would lead to a better outcome for you. Where you disagree with the decision in the private ruling, or the Commissioner fails to issue such a ruling, you can lodge an objection against the ruling if it relates to income tax, fuel tax credit or fringe benefits tax. Your time limits in lodging an objection will depend on whether you are issued an assessment for the matter (or period) covered by the private ruling.
Involvement of others
Where, as part of our 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.
Ownership of documents
The final Financial Statements, Income Tax Returns and any other documents which we are specifically engaged to prepare, together with any original documents given to us by you, shall be the property of you. Any other documents brought into existence by us including general journals, working papers, the general ledger, draft financial statements and copies of tax returns, will remain our property at all times.
Lien on documents
In relation to any subsequent termination of our services, you are advised that we shall be entitled to retain all documents belonging to you and any related parties we act for until payment is received in full for all outstanding fees. The firm has also established dispute resolution procedures.
We maintain a separate trust account for dealing with all money and property received from you or on your behalf, except for amount received from you in payment of our fees. We may apply these funds in payment of our bill with your written authorisation.
Professional fees and payment terms
Our fees, which will be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus direct out-of-pocket expenses.
Any additional fee for an additional service not covered in the scope of this engagement will be the subject of a separate engagement letter under separate fee arrangements.
Accounts for services provided will be forwarded to you as work in progress. Payment of any account is required to be made within 14 days, unless special alternative arrangements are made with us prior to the due date.
If the amount payable on the Invoice is not paid within 30 days of the date of that Invoice, then Arthur Kyriacou & Co reserves its right to charge you interest on the total unpaid amount calculated 30 days from the date of the Invoice until the actual date of payment at the rate of 10% per annum calculated daily.
It is our requirement that the owners/directors of the business personally guarantee the payment of all accounts for professional fees, including out-of-pocket expenses rendered by us from time to time.
In the event where your overdue account is referred to a collection agency and/or law firm, you will be liable for all costs which would be incurred as if the debt is collected in full, including legal demand costs.
Our collection use and disclosure of your personal information may be subject to the Privacy Act 1988 (Cth) and accordingly we will only collect personal information about you that relates to the Terms of Engagement (TE). We may disclose personal information about you with your implied consent for the primary purpose of this TE or to third parties by express consent or as required by law. If you would like to access any PI we might hold about you contact us on (03) 9808-7377.
Where an outsourced service requires the disclosure of personal information to an overseas recipient, we will take reasonable steps to ensure, by contract or otherwise, the recipient complies with the Australian Privacy Principles.
We have an ethical duty of confidentiality, which means we must not share or disclose your details of this Terms of Engagement to anyone without your consent unless required to by law.