Terms of service.
Engagement Brochure
The Pratt Partners Client Engagement Brochure is to confirm our understanding of the terms of our engagement and the nature and limitations of the services we will provide.
Purpose, Scope and Output of the Engagement
This firm will provide Taxation, Accounting and Business Services, which 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.
The work prepared for this engagement will be prepared for distribution to the signatories and the nominated personnel and for lodgement with the statutory bodies. We take no responsibility for the reliance on the materials produced of any other person or entity.
Limitations
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.
The 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.
Limitation of liability
The liability of our firm is limited by a scheme approved under Professional Standards Legislation. You can find more information on the scheme through the Professional Standards Councils: http://www.psc.gov.au/
Lodgement dates and timeframes
To ensure the efficient completion of your work, it is agreed that all information that is reasonably required will be made available to us in order for us to complete the various engagements agreed.
Some of the agreed work is subject to specific lodgement dates. Our objective is to ensure that all work is completed in time to meet these lodgement dates. Our capacity to complete the work required relies on us receiving the required information within a reasonable time period prior to those due dates (our recommendation is not less than 30 days) and receiving timely answers to any queries raised.
We will agree a work program with you including the dates for both the receipt of work and our completion date.
Rights & obligations
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:
o The right to seek a private ruling;
o The right to object to an assessment by the Commissioner;
o 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.
Correction of incorrect or misleading statements
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.
Non-compliance with laws or regulations
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.
Tax agent services
The engagement will be managed by Anthony Pratt operating under Tax Agent No. 26 066 818. The Tax Practitioners Board maintains a public register of the registration details of registered, suspended and deregistered tax and BAS agents. Only registered practitioners can provide tax agent services. You can access the register here: https://www.tpb.gov.au/public-register
Please do not hesitate to contact any of the team on (02) 8224 8000 if you have any queries or require further assistance.
From time to time during the completion of your work, we may engage various staff who we consider appropriate for the completion of your work. These personnel will have access to your accounting and taxation records only for the purpose of completing the accounting and taxation engagements agreed. In all cases, these personnel will be subject to our supervision and control.
Complaints
We are committed to providing quality services to our clients. This commitment extends to providing a complaints resolution mechanism for our clients. If you have a complaint about the services delivered to you, in the first instance, please contact the responsible managing partner/director. If your matter is not resolved, you have the right to make a complaint to the Tax Practitioners Board: https://www.tpb.gov.au/complaints.
Conflicts of interest
Where a conflict of interest exists, we will need to identify the conflict and how this conflict of interest will be managed to enable the relevant parties to make an informed decision as to whether to progress with the engagement. We, as tax agent, are responsible for identifying, assessing, evaluating, deciding and implementing an appropriate response to manage conflicts of interest. If the conflict cannot be managed, we will not progress with the engagement. Note that any referral fees or other benefit obtained or paid by the firm or tax agent in relation to the engagement will need to be disclosed as a conflict.
Privacy & confidentiality
Our obligation to you - Pratt Partners is compliant with the Privacy Act 1988 (Privacy Act). A copy of our privacy policy is available on our website or on request to Anthony Pratt.
From time to time, we may be asked to provide copies of the financial statements, income tax returns or other information produced in the course of this engagement.
If we are requested to provide this information (including to a third party such as a financial institution), any one person subject to this engagement can provide this authorisation. For example, if one person subject to this engagement requests information regarding the company or individuals involved then we have authority to provide this information to them without seeking further authorisation.
During the course of the engagement, we may collect personal information from you. We will treat as confidential and maintain the confidentiality of all information and records that you provide or disclose to us, and those produced in the course of completing the engagement. This information will only be disclosed to a third party where specific authority has been granted for us to provide this information, or where we are subject to a legal duty or professional obligations under APES 110 to disclose the information.
From time to time, our files are subject to review by Chartered Accountants Australia & New Zealand, which monitors quality control and compliance. By agreeing to the terms of this engagement you agree that files relating to this engagement may be made available under this program if required.
Cloud computing
We utilise third party cloud computing software systems as part of our service delivery to you. We have assessed these service providers and have taken all reasonable measures to protect your privacy.
Our firm utilises MYOB accounting software. MYOB’s data centre is domiciled in Australia and MYOB are ISO 27001 certified.
Treatment of tax refunds
If applicable, it is our policy to have your tax refunds deposited into our trust account which we offset against our fees and then we refund any difference to your nominated bank account. The ATO will be advised of our trust account for the payment of any refunds.
Period of Engagement
This engagement will start upon acceptance of the terms of engagement by the Client in line with this brochure. We will not deal with earlier periods unless the Client specifically asks us to do so and we agree.
This engagement document will be effective for future years unless we issue an amended one to you.
Fees
Where fees have not been agreed on upon our engagement, our fees will reflect the time we spend on your matter. The actual fees and rates charged by us reflect the seniority, expertise and experience of the persons involved, as well as factors such as the time frame in which this work is to be carried out, the particular nature of the retainer and the complexity and risks of the matter. The maximum hourly rate for the services of a partner is $450 per hour exclusive of GST. If a fee estimate is provided, it is given in good faith but is not contractually binding. This fee arrangement will be subject to change if your instructions change or other circumstances come to our attention which necessitate us contacting you to discuss a revision of these fees. We may charge you for any additional costs or disbursements we incur in relation to your matter, including the following:
(a) Travel costs
(b) Stationery costs, and
(c) Couriers
Tax Invoices may be issued progressively as work segments are completed under this engagement. Invoices are payable within 14 days.
Our fees assume that the source material provided to us is reliable and useable to complete the engagement. Where there is uncertainty regarding the source material, or the tax or accounting treatments used, then we will raise these issues with you. Rectification of these issues is not included in our fee estimates and will be invoiced in addition to our fee estimates.
General assistance with issues that you may face from time to time outside of this engagement will be billed at an hourly rate.
We reserve the right to suspend work where these invoices remain unpaid.
In the event that the fees for this engagement and any other additional work requested remain unpaid, we reserve the right to explore a lien over any documents that we have prepared.
In the event of a dispute, we will seek to resolve this with you. If a resolution cannot be achieved, the parties agree to appoint an independent mediator within 5 days of either party serving a notice of dispute in writing.
Records & working papers
In the course of our engagement, we will prepare various working papers and notes consistent with our internal quality control system to support the outcomes of this engagement. These working papers remain the property of our firm and will be retained by us to support any future queries on work completed. Original source records provided by you to us to assist in the completion of your work will be returned to you at the completion of each engagement. Where appropriate, we may take copies to retain for our client files.
Confirmation of Terms
If these terms of engagement are inconsistent with any other written agreement we have made with you, whether generally or in respect of a specific instruction, then that other agreement prevails over these terms.
Acceptance of our services in conjunction with this information brochure indicates that you understand and accept the arrangements. This information will be effective for future engagements unless we advise you of any change.
If you wish to discuss any of the terms of this engagement please contact our office. We look forward to working with you.
Pratt Partners Chartered Accountants in Sydney and Gold Coast