Introduction to our new Engagement Letter

It is our decision to provide open access to this Engagement Letter on the Rick Mandelson & Associates website or to send you a hard copy upon request.

This information is to confirm our understanding of the terms of our general client engagement and the nature and limitations of the services that we provide. This information is relevant to all non audit engagements where no specific client engagement letter is provided.

As members of the National Institute of Accountants in Australia we are bound by and adhere to standards of conduct that have been long standing or are more recently developed for our changing professional environment.

One such recent development is the commencement of the new Tax Agent Services Regime which has taken effect under the Tax Agent Services Act 2009 (TASA). An important feature of the TASA is the provision of a "safe harbour" protection from penalties in certain circumstances for taxpayers who engage registered tax agents.

To obtain the benefits of "safe harbour" protection, the legislation requires the taxpayer to provide the registered tax agent with "all relevant taxation information" to enable accurate statements to be provided to the Australian Taxation Office. This requirement may be important to both parties in identifying and understanding the purpose and scope of the engagement as set out below and may also affect other matters discussed below.

You will find further discussion on the "safe harbour" protections in the document entitled Clients' rights and obligations under the taxation laws.

ENGAGEMENT LETTER

Engagement of Rick Mandelson & Associates as your Tax Agent

Terms and Conditions Agreement

Following our discussions, we are pleased to accept your appointment of our firm, as your Tax Agent, for you and any related entities. We seek to act in the best interests of our clients at all times and offer the highest level of professional services. Our Tax Agent number is 64751-005.

The scope of the engagement is as set out below (and any additions shall only be by agreement of both parties and evidenced in writing):

This firm will :

•  Prepare and lodge the BAS & IAS returns for your business entities;
•  Prepare the annual financial statements for your business entities;
•  Prepare and lodge the annual income tax returns for your business entities and your family;
•  Prepare and lodge the annual FBT returns for your business entities;
•  Prepare and lodge the superannuation returns for your superannuation fund
•  Provide general taxation advice, including business tax advice on request
•  Act as your contact with the Australian Tax Office for matters relating to your taxation affairs
•  Provide any advice that we are qualified to provide as requested by you

and will be conducted in accordance with the relevant professional and ethical standards as issued by the Accounting Professional & Ethical Standards Board Limited (APESB). 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.

Professional Fees and Payments

All professional fees for the services provided are charged to you based on the time and degree of skill and acumen required to complete the tasks, including out of pocket expenses and statutory charges, unless otherwise agreed between the parties.

Our schedule of fees which includes our charges for a variety of services is available, in our office, at anytime.

We are happy to provide a written quote when requested.

However, fees will also be affected due to matters outside our control such as an unforeseeable delay, the co-operation or otherwise of third persons, deficiencies in documentation provided and/or increased statutory charges. If the costs to you are likely to be significantly higher than any quote provided, we will inform you of this and the reasons for the likely increase.

It should be noted at the outset that as a general proposition we rely upon our clients to provide us with accurate and timely information to enable us to properly perform our engagement obligations. Consequently, any rectifying work performed by us on the basis of incorrect or late information will be work which is outside the scope of our engagement and will be charged as additional services.

Terms of Payment

Unless other terms have been agreed to, our terms of payment are strictly 14 days from the date of each invoice. We will provide you with an itemised account of all fees, costs and disbursements upon request.

Guarantee

Where the client requesting our accounting services is a company, the Director/s agree to guarantee the due and punctual payment by the company of all money which is or becomes payable by the company to us under the Terms and Conditions Agreement or on any other related account.

The Director/s also agree to pay to us on demand monies owing on any other related account without the need for us to have made any prior demand on the company or to have taken any other steps against the company to recovery the outstanding monies.

Disclosure of other fees and commissions

We disclose to our clients any commissions or other fees received as a result of work done for that client and will fully comply with any statutory requirements in relation to the disclosure of such information.

Deduction of Fees from refund cheque

If it has been agreed between the parties that the fees for service will be deducted directly from any tax refund cheque then in accordance with the requirements of the National Institute of Accountants (NIA), your refund will be deposited into our trust account, the fees will be deducted and the remaining amounts forwarded to you in accordance with your instructions.

Documents

Before we lodge any necessary documentation on your behalf we will forward draft documentation to you for approval. We shall endeavour to ensure that documentation is lodged with the relevant departments by the due dates, provided all information and documentation is received in a timely manner, to allow us adequate time for preparation and lodgement of the documentation.

Responsibility for Accounting and Internal Control Systems

We advise that the responsibility for the maintenance of a business accounting system and internal control systems rests with you (the client), including the protection of and prevention against fraud. You will be responsible for the maintenance and keeping of books of accounts. If any material weakness in the accounting system or internal control systems comes to our notice, we will advise you accordingly.

It is important to remember that you are personally responsible and liable for the information contained in any statutory return. You must retain all necessary supporting documentation to back up any claim. We will not take responsibility for any failure on your behalf to maintain adequate records or for failure to provide all necessary details. It is vitally important that if you are or have been a child support client that you provide information relating to this as it may affect the lodgement of your return and any refund amounts owing.

Ownership of Documents

The final financial statements, tax return and any other documents which we are specifically engaged to prepare, together with any other original documents given to us, shall remain your property. Any other documents brought into existence by us including general journals, working papers, the general ledger, draft financial statements and/or tax returns, will remain our property at all times. However, we will always provide you with copies of any documents that you may require from time to time.

Lien over Documents

We may invoke a Lien over certain documents held until such time as an outstanding fee has been paid or other satisfactory arrangements are reached. A Lien is a right to hold certain documents or property until the debt incurred in respect of that property/document has been satisfied. The Lien however may not be held over property that belongs to another, including if held jointly, and does not cover statutory documents (eg a Tax Return, BAS or refund cheque)

Quality Review

As a Fellow of the National Institute of Accountants (NIA) we are subject to periodic quality assurance reviews (as well as an annual audit of our trust account). Unless otherwise advised by yourself, by engaging our firm, you are consenting to your files being part of such a quality review.

Standards

We aim to provide the highest standard of professional service and are focused on the concerns of our clients. If for any reason you feel you have not received the service level expected or have an issue to raise, please, at the first opportunity, contact our office to discuss how the problem may be resolved.

Furthermore, as a Fellow of the NIA in public practice, we are subject to the ethical requirements of the NIA and its Investigations and Disciplinary processes. These requirements cover issues such as a Code of Conduct and Ethics, adherence to Accounting and Auditing Standards, requirements to undertake Continued Professional Education and to hold trust money in a Trust Account. Should there be an issue regarding the ethical or business practices of our firm, such matters may be referred to the NIA Investigator. However, as the accounting profession does not have regulated fees, the NIA will not investigate purely fee-based disputes but may recommend the parties seek mediation to resolve such disputes.

As a registered Tax Agent we are also subject to the requirements set down by the Tax Agents Board and complaints may be lodged with them, for information on the Tax Agents Board they may be contacted by calling 1300 362 829.

Previous Accountant (where applicable)

As a matter of professional courtesy, and in line with the requirements of the NIA, we will need to inform your previous accountant that we have been engaged by you as your new accountant and to receive from them any outstanding matters and files. You may refuse to provide this information but in doing so it may cause problems in the efficient transfer of your files.

Previous Returns

Please note that we are not engaged to review the accuracy of any returns lodged by your previous accountant.

Notification to Relevant Authorities

It is implied by accepting our service you accept this engagement letter that you agree to us notifying the Australian Taxation Office and any other relevant statutory authorities, that we now act on your behalf.

Consent

Acceptance of our services in conjunction with this information indicates that you understand and accept the arrangement. You also acknowledge that you are aware that the latest terms and conditions of our relationship will be available at all times on our website.

Should you have any further queries in relation to the above, please do not hesitate to contact us.