1. Engagement Scope

The scope of the engagement is as set out below:

  • Prepare and lodge tax returns
  • Prepare financial reports where required
  • Provide general taxation advice in relation to the preparation of this specific tax return.
  • Act as your contact with the Australian Tax Office in relation to the preparation of this specific tax return.

By proceeding with this engagement you understand that a fee will be payable for the preparation of your tax return even if lodgement does not occur. Essentially, if you engage CXC Financial Partners to complete this return then engage another accountant to lodge or lodge directly with the ATO yourself a standard Income Tax Return fee will still be payable.

Who we are and what sets us apart

CXC Financial Partners provide a full range of financial services including:

  • Taxation Advice
  • Taxation Compliance
  • Financial Planning Advice
  • Mortgage Broking
  • Investment Property Advice

Our goal is to help clients achieve their financial objectives. We develop long term relationships to guide our clients towards financial freedom. We provide direction and certainty along with ongoing service to ensure they achieve the lifestyle they desire.

2. Limitation of Engagement

This engagement letter is limited to Accounting services only, and relates solely to the tax return that you have engaged CXCFP to complete. If you require ongoing access to an accountant or our client service team throughout the year we will provide you with a quotation for ongoing service.

If you need financial planning service/s, we will provide you a separate engagement letter. It is noted below that you may wish to take this opportunity to meet with one of our experienced advisers to ensure you are on-track to meeting your financial objectives.

The procedures that we will perform will not constitute an audit or review in accordance with Australian Auditing Standards applicable to review engagements and, consequently, no assurance will be expressed.

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 which may come to our attention.

Our engagement does not extend to liaising with ASIC or acting on your behalf with relation to matters handled by ASIC. Should you require this assistance we will provide an additional quote.

3.The Tax Return Preparation Process

Slide4

4. Professional Fees and Payments

All professional fees for the services provided to you will be based on the time and degree of skill required and may also include out of pocket expenses and statutory charges, unless otherwise agreed between the parties.

Our current professional fees are (including GST)
Consulting and Advice - Senior Advisor $ 330.00 per hour
Consulting and Advice - Senior Advisor $ 198.00 per hour
Bookkeeper $ 99.00 per hour

For work undertaken for periods of less than an hour, the rate shall be charged in 6 minute blocks, or part thereof. All professional fees are GST inclusive.

The following provides indicative pricing (including GST) for standard compliance work;

Our current professional fees are (including GST)
Individual- PAYG employee $220.00 to $ 330.00
Individual- Sole Traders $ 660.00 to $ 1,320.00
Individual with Investment Portfolio $ 330.00 to $ 660.00
Company- Private $ 1,320 to $ 4,400
Quarterly BAS $ 220.00 to $ 440.00
Trust – Small $ 880.00 to $ 2,200
Trust – Large $ 1,320 to $ 3,300
Self-Managed Superannuation Fund $ 1,650 to $ 4,650

Any estimate of the cost of service is only an estimate and the actual cost may vary.

Our fee/s may change due to matters outside our control such as unforeseeable complications, the co-operation or otherwise of third parties, deficiencies in documentation provided and/or increased statutory charges. If the cost to you is likely to be significantly higher than originally estimated we will contact you to explain the reasons for the likely increase. If the assignment is subject to significant delay that is out of our control, or is terminated prior to finalisation, CXCFP reserves the right to request payment for the work completed to that point.

Terms of Payment

Our preferred payment method for personal tax returns is electronic transfer or via credit card after we prepare a draft tax return but before lodgement with the ATO. We retain the right to withhold lodgement of your Income Tax Return until the invoice has been paid. This applies only where an invoice has been issued directly to you.

For large or ongoing assignments, we may determine and agree on a regular scheduled payment plan. Unless other terms have been agreed to, our terms of payment are on completion of the works performed, or strictly 7 days from the date of each invoice.

We will provide you with an account of all fees, costs and disbursements upon request. Please note that we cannot lodge your tax return and other compliance documents (such as BAS) prior to our invoice payment.

5. Tax Refund Electronic Payment

Should you wish your tax refund to be directly credited to a nominated bank account please make sure that you complete bank details on our tax checklists. It is your responsibility to ensure that the bank details on the checklist are correct.

6. Conflicts of Interest

The company, its Directors and employees hereby advise that we are not aware of any conflict of interest in relation to acting as an Accountant and Tax Agent for you and your related entities. Our firm will not accept an engagement or carry out any activity if doing so will adversely affect our ability to supply our services to you in accordance with this engagement letter. Further, we will advise you within 72 hours of any conflict of interest which may arise from time to time. Should an irreconcilable conflict exist, either party may terminate the engagement without notice.

7. Responsibility for Internal Accounting & 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 account. If any material weakness in the accounting system or internal control systems comes to our attention, we will advise 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.

Substantiation Requirement

Upon signing our appointment letter, you declare that it is your responsibility:

  • To substantiate all work related expenses claimed in your tax return.
  • To prove that you incurred an expense for income producing purposes.
  • To obtain original receipts and keep them for a minimum of five years from the date your return is lodged.
  • To ensure that you declare all your assessable income.

In addition, you declare that you are aware of additional tax, penalties, interest and possible prosecution action that may be taken against you by the ATO if you provide details which lead to an incorrect tax return being lodged.

8. Privacy of Information

CXCFP is committed to protecting the privacy of your personal information. Personal and financial information is collected for the purpose of your accountant providing you with the services that you have requested, managing your accountant’s relationship with you and contacting you about services in which you may be interested.

CXCFP relies on the information you supply to provide a comprehensive service and to deliver accurate advice. You are responsible to fully disclose all information that is, or could be, relevant to the engaged assignment.

Using and disclosing your personal information

Your personal information may be disclosed for purposes related to the provision of the engaged assignment. The types of service providers that may be provided with your personal information are:

  • Service providers contracted to CXCFP for the provision of our service – see “Use of Contractors and Other Outsourced Third Party Services”
  • Other tax specialists, financial advisers, legal advisers and organisations involved in providing specialist advice where required;
  • Your appointed representatives or service providers such as your solicitor, financial adviser, stockbroker or bank;
  • Government authorities and other organisations when required by law; and
  • Other organisations that you have consented to your personal information being disclosed to.

Collection of your Tax File Number

CXCFP collect and retain your Tax File Number (TFN) for the processing of your tax return. You should note that, in accordance with the Taxation Administration Act 1953 (Cth), we:

  • Can only collect your TFN when it is necessary for a lawful purpose (such as processing your Tax Return)
  • May disclose your TFN to the Australian Tax Office
  • Will use your TFN to review and reconcile information provided by the ATO relating to your income and financial circumstances
  • Will retain your TFN to ensure we are able to provide similar services in future
  • May use your TFN if you engage our Financial Planning team and should it be required for a lawful purpose
  • Will continue to take reasonable steps to secure and protect your TFN.

Third party information request authority

As you may not have kept all records required to prepare the engaged assignment, we may need to contact third parties to request this information. In order to do so we will require you to complete a third party authority form where applicable.

Other Service and Advice

CXCFP provides a range of services, and as such has access to specialist knowledge and services across a number of professional disciplines including wealth management and finance. Your accountant may request the assistance of personnel within the organisation to provide specialist knowledge and/or review aspects of your financial circumstances where the provision of specialist advice and services outside the scope of the current engagement may benefit you. We assume you are happy for us to proactively engage this internal expertise, and to suggest extended levels of value-add service unless you tell us otherwise.

Use of Outsourced Third Party Services

Subject to the nature of our engagement third party contractors or outsourced service providers may be involved in providing various aspects of your accounting work. These services may include:

  • Accounting file preparation
  • Data entry into our accounting systems
  • Auditing of accounts (Inc. Self-Managed Super Funds)
  • Actuarial (pension) analysis

All work on your accounting file is performed on our systems in accordance with strict security and process protocols and is monitored and quality assured by our senior accounting staff. All costs are treated as internal costs incurred in the provision of our service.

Contact with Previous Accountant

As a matter of professional courtesy, we may need to inform your previous Accountant that we have been engaged by you as your new Accountant and request to receive from them any outstanding matters and files. You may refuse to provide their contact information but in doing so may cause problems in the efficient transfer of your files.

9. Previous Returns

Please note that we are not engaged to review and are not responsible for the accuracy of any returns lodged by your previous Accountant. Thus, any work relating to the returns lodged by your previous Accountant can only be undertaken by us if you agree to pay us separate fee/s.

10. Access to Online Financial Information and Accounts

You may wish to provide CXCFP access to your online financial information, including bank accounts, to ascertain transaction history and or perform other engaged duties on a needs basis. If this is the case, we will require you to complete the third party authority form.

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. However we reserve the right to make a reasonable number of copies for our records which will be stored electronically on our central client management system. 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 any outstanding fee(s) 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 (e.g. a Tax Return, BAS or refund cheque)

11. Limitation of Liability

Our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils website www.professionalstandardscouncil.gov.au.

12. Our Standards

CXCFP aims to provide the highest standard of professional service. If for any reason you feel you have not received the service level expected or have feedback you wish to provide please, in the first instance, contact Josh Perkins on 1300 925 081 or josh.perkins@cxcfp.com.au.

13. Next Steps

If you are in agreement with the above terms and conditions please indicate as such via the online portal.

It is the requirement of the Australian Taxation Office for each taxpayer to sign the tax agent appointment & declaration. This declaration will be provided along with the tax return sign-off papers once your return has been drafted.

Should you have any further queries in relation to the above, please do not hesitate to contact our office on 1300 925 081 or taxservices@cxcfp.com.au.

CXC Financial Partners