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BUSINESS ENGAGEMENT LETTER

This is a legal agreement. Please be aware of the terms and conditions including fees and penalties in this engagement.

FULL NAME:

BUSINESS NAME:

FULL ADDRESS:

Purpose

This letter is to confirm the terms of engagement (TE) between yourself and S.J. Ellis Accounting Services as well as the nature and limitations of the services we provide.

Objective of the Engagement

S.J. Ellis Accounting Services will provide tax agent services in compliance with APES 110 Code of Ethics (Code), APES 220 Taxation Services and the Code of Professional Conduct pursuant to Tax Agent Services Act 2009. These services include:

Scope of work included

Assistance with preparation of your BAS/GST return.
Preparation and lodgement of your company/trust/individual tax return.
- Tax returns and/or financial reports are prepared for distribution to statutory bodies for the agreed purpose.
- There is no assumption of responsibility for any reliance on our report by any person or entity other than you and those parties indicated in the report. The report shall not be inferred or used for any purpose other than for which it was specifically prepared. Accordingly, our report may include a disclaimer to this effect.
Based on the above scope of work, you have given us the authority to use the tax agent portal and other tax portal related activities for the purpose of managing and meeting your taxation and superannuation lodgement obligations.

Scope of work excluded

We do NOT offer services for preparation or help with WorkCover, Superannuation or Payroll.
Unless otherwise specified, audit and assurance or review are NOT included
We are NOT responsible for keeping, checking and/or providing source documentation.

Term

This TE will commence at the time you indicate acceptance and will continue until revoked by us or you.
This engagement doesn’t include accountant letters or references requested by lenders, financiers, real estate agents or government institutions.

Timing

We will provide the scope of work within the specified time frame or within a reasonable period considering the context of the services.
Company/Trust/Individual tax returns should be completed in line with your ATO deadline.
We are a small practice, therefore if you are a late lodger or late with your work you can lose priority on our list.
The deadline for our work has been extended to the following 15^th May in order for us to manage the heavy volume of work.
Generally, we prioritise individual tax returns from July to November as demand requires and Company, Trust and SMSF lodgements from November to May.

Our Promise

We will perform the required procedures (guided by the APES suite of standards) that directly relate to the engagement consistent with our Fundamental Principles of Integrity, objectivity, professional competence and due care, confidentiality and professional behaviour as well as identifying, avoiding and dealing with conflicts of interests.
We will seek to understand your requirements and provide you services confidentially and professionally.
We will document sufficient and appropriate records of the procedures performed for the TE, which may be subject to Best Practice Program assessment by CPA Australia under APES 320 Quality Control for Firms.

Our Responsibilities

We are obliged to consider whether our clients could create any threats to compliance with our Fundamental Principles if the risk can not be reduced to an acceptable level, we are obliged to cease or decline the TE under the Code (section 320).
We have a duty to act in your best interests, unless this duty is inconsistent with our duty to act in the public interest.
If the TE involves taxation services, we will inform you of your individual or your employers rights and obligations available under the taxation law, therefore allowing you to make an informed decision.
We will inform you of:
- Your rights and obligations under taxation law, including any rights that might be available to seek a private ruling and the lodging of objectives and appeals against adverse positions adopted by revenue authorities.
- Any possible penalties and other legal tax consequences.

We are responsible for maintaining records for a period of 5 years unless otherwise required by legislation.
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 draw your attention to our firm’s system of quality control, which has been established and maintained in accordance with the relevant APESB standards. As a result, our files may be subject to review as part of the quality control review program of the CPA which monitors compliance with professional standards by its members. 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.
During the course of our engagement, if we identify or suspect that non-compliance with Laws or Regulations (NOCLAR) that directly effect material amounts or disclosures in the financial statements or compliance, and therefore may be fundamental to your ability to continue its business or avoid material penalty, we may:
- discuss the matter with the appropriate level of management, those charged with governance or the internal auditor, as appropriate
- communicate the non-compliance or suspected non-compliance with your external auditor, unless prohibited by law or regulation
- disclose the matter to an appropriate authority regardless of legal or regulatory requirement to do so; and/or

withdraw from the engagement and the professional relationship where permitted by law or regulation.
Where appropriate, we will inform you of our intention to disclose the matter to an appropriate authority before doing so. However, if we have reason to believe that the actual or intended conduct would constitute an imminent breach of a law or regulation that would cause substantial harm to the general public, we may immediately disclose the matter to an appropriate authority in order to prevent or mitigate the consequences.

Your Responsibilities

You are responsible for full disclosure of all relevant information and for your own record keeping relating to your affairs.
You provide us with records relating to your affairs in a timely fashion.

You are responsible for the reliability, accuracy and completeness of the particulars and information provided to us, and, if the TE includes financial reporting, the accounting records and disclosures of all material and relevant information you provided. Accordingly, any advice given to you is only an opinion based on our knowledge of your particular circumstances.
You are responsible for retaining paperwork for as long as legally required.

- If the TE includes taxation services:
  - you have obligations under self-assessment to keep full and proper records in order to facilitate the preparation of accurate returns
  - you must retain paperwork for a period of five years after the assessment as you may be subject to an Australian Taxation Office review
  - you are responsible for checking the assessment before submission to ensure accuracy.

You are required to provide us with reasonable access to relevant individuals and documents, and shall be responsible for both the completeness and accuracy of the information supplied to us.
Any advice given to you is only an opinion based on our knowledge of your particular circumstance.
You are providing us as agents the authority to use the tax agent portal and other tax portal activities.
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 7 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 are responsible for checking the return before it is signed to ensure that the information in the return is accurate.
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. If 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.

Ownership of Documents

You own all original materials given to us. We own all materials produced by us that resulted from our skill and attention, to the extent that the materials produced by us incorporate any original materials you give to us.
We may exercise a lien over your documents in our possession in the event of a dispute, which will be handled in accordance with our firm’s dispute resolution process.
Subject to the payment of all outstanding professional fees and disbursements owed to us, we will provide you with materials we produced in the event you engage the services of another practitioner and the materials are required by your new practitioner.

Fees - Basic Business Tax Return and Financials: $990, Intermediate Tax Return and Financials: $1,490, Advanced Tax Return and Financials: $1,990

The fee arrangement is based on the expected amount of time and the level of staff required to complete the engagement as agreed.
Our professional fees will be calculated on a fixed fee basis and are GST inclusive
If no method is specified, our fees will be calculated on a time-cost basis at a rate of $140 per hour.
Our invoices may also include disbursements paid by us. These may include photocopying charges, ATO correspondence, telephone and facsimile transmission charges, travel fares and expenses, stamp duty and fees paid to third parties such as couriers, registration fees or fees for other professionals. These may be in addition to the fixed price (if applicable).
Unless other payment terms are agreed, each invoice is payable within 7 days of receipt.
Please note we expect payment before lodgement and we do not take our fee from refund.
We will charge interest on late accounts at a rate of 7% p.a.
You are responsible for all recovery costs associated with the collection of your debt.

Additional Fees for Service

Tax information per hour $140-$330
Specialist advice per hour $140-$330
BAS & Bookkeeping per hour $85
BAS lodgement $85
Administration per hour $85
ABN application $85
Failure to attend appointment $85

Third Party Involvement

Where warranted, we may engage third party specialist professionals and other public practitioners, to obtain the advice you need or to assist us in providing our service to you. These may include cloud service providers and outsourced service providers.
We will seek your consent if third party involvement requires additional fees for their service (if applicable).
We have outsourcing arrangements with BOSS in Bangalore, India, whom we engage from time to time to assist us. The nature and extent of the services that we utilise are as follows: accounting services, individual tax returns, bookkeeping services, business accounting, preparation of company returns and financials. In providing our services to you, we utilise BOSS using Cloud Computing
SJ Ellis Accounting Services does not provide financial planning advice, but due to client demand it has been necessary to create our own financial planning business (Thura Pty Ltd). Thura Pty Ltd Services is an authorised representative of Lifespan 1272789, which is the preferred provider of financial planning services for S J Ellis Accounting Services. If you choose to utilise Thura’s service, a fee for service will be received by Thura and by signing this document you authorise the free transfer of information between both SJ Ellis Accounting Service and Thura Pty Ltd.

Privacy & Confidentiality

Our collection, use and disclosure of your personal information (PI) may be subject to the Privacy Act 1988 (Cth) and accordingly we will only collect PI about you that relates to the TE. We may disclose PI with your implied consent for the primary purpose of this TE, or to third parties by express consent, as required by law or as deemed necessary with the completion of your work.
We may collect PI about you, 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 our respective obligations under the Privacy Act 1988 (Cth). Your obligations may include ensuring your privacy policy and contracts include a reference to your collection practices, how you use the PI and that you may disclose the PI to an agent for public accounting services.
We have an ethical duty of confidentiality, which means we must not share or disclose the details of your TE to anyone without your consent unless required to by law.
If an outsourced service requires the disclosure of PI, we will take reasonable steps to ensure, by contract or otherwise, the recipient complies with Australian Privacy Principles.
We may disclose details and records of the services provided to you to CPA Australia Ltd, (if requested) for the purposes of conducting CPA Australia Best Practice Program assessment aimed at maintaining high industry professional standards. CPA Australia Privacy Policy.

Professional Indemnity Insurance (PII)

We hold professional indemnity insurance of at least the minimum amount prescribed in the CPA Australia Ltd By-Laws or as required by law.

CPA Client Permission Authority

CHECK BOX BELOW

I/we understand that my accountant (Steve Ellis) may be selected to undergo a Quality Review in accordance with the Quality Review Program of CPA Australia.

I/we understand that strict rules of confidentiality have been prescribed by CPA Australia, and that my/our file will be made available to the reviewer only if I/we so consent.

I/we understand that my/our name, or any other identifying information, is not included in the report or working papers of the reviewer.

I/we hereby consent to my/our file being made available to the reviewer for the purposes of the Quality Review in connection with the conduct of my/our affairs which may include, as part of the file review, the disclosure of my/our tax file number/s.

Client Substantiation Declaration Relates To All Client Engagements

CLIENT SUBSTANTIATION DECLARATION

CHECK BOX BELOW

This declaration is for the year 2023 and any prior years, as requested by you to be completed by S.J. Ellis Accounting Services and will continue until revoked by us or you.

I confirm that I must demonstrate certain expenses have been incurred in the course of deriving salary and wages income, and that you have advised me that I must satisfy the substantiation requirements in the Income Tax Assessment Act 1997 in relation to claims for work, car and business travel expenses. In particular, I have been informed by you of the need to OBTAIN ORIGINAL RECEIPTS for deductions claimed for such expenses and to keep them for a minimum of five years from the date of lodgment.

The receipts must contain the following details:

name of the supplier
amount of expense
nature of goods and services (noting the specific type of items purchased or expenditure incurred, which I am able to personally record up to the date of lodgement of my return where not adequately noted by the supplier)
date of expense (when not noted by the supplier I am able to personally record) and
date of the document

Working from home records

You must keep a record of the hours you have worked from home. This could be a:

timesheet
roster
diary
similar document that shows the hours you worked.

*If you use methods other than the shortcut method, you must also keep a record of the number of hours you worked from home along with a record of your expenses.

Penalties in respect of incorrect returns

You have also advised me of the additional tax, penalty charges, general interest charge and possible prosecution action which could be initiated by the Australian Taxation Office (ATO) if I lodge an incorrect tax return, including the claiming of tax deductions for amounts which are not allowable for income tax purposes. In addition, you have informed me that an important feature of the tax agent services regime is the provision of a Safe Harbour Protection from penalties for taxpayers who engage a registered tax agent. You have advised me that in order to obtain the benefits of such Safe Harbour Protection, I must provide you with all relevant taxation information to enable accurate statements to be provided to the ATO.

Income from all sources in and out of Australia for the year of income

You have advised me that in my return I must declare income from all sources, in and out of Australia, including any net capital gains on disposals of both Australian and foreign assets occurring during the year of income.

Apportionment

I have kept appropriate documents to verify my business/private usage of claim.
My employer will confirm that it was necessary for me to incur such expenditure in earning my income.

ATO review and/or audit matters

I further confirm that:

I may be required to verify any income or expense item noted in my return in the event of an ATO review and/or audit.
I must substantiate all work, car and travel expense claims under self-assessment.
I have read and understood the return prepared for me.

I declare that:

CHECK BOX BELOW

I have disclosed and you have returned all income, including net capital gains, which I have earned or received for the engaged income year/s .

All the claims for deductions and tax offsets which have been included in the return are based on my specific instructions and advice, satisfying the relevant taxation requirements.

I have all receipts or documentation necessary to substantiate the above claims which I will make available if required by the ATO.

You have clarified what written evidence (including car/travel records) will be required during an ATO review or audit and that penalties (including prosecution) may be applied if incorrect claims are identified in an ATO review or audit.

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Timestamp

Audit

May 1, 2023 2:50 am AEST

BUSINESS ENGAGEMENT LETTER Uploaded by Steve Ellis - sjetax33@gmail.com IP 203.144.15.124