Terms of Professional
Work
PERSONAL INCOME
TAX RETURNS
In relation to personal
tax return preparation, we follow an established process encompassing
quality control measures. Our work will be based on the documentation
and information provided to, or obtained by, us.
We rely on clients bringing
to our attention any changes in the documentation and information as
originally presented, as it may affect our work or advice.
Clients are required
to ensure that documentation and information supplied to us, to the
best of their knowledge and belief, are not false or misleading and
does not omit material particulars.
Unless otherwise stated
or required under law, we will not verify the accuracy and completeness
of such documentation or information.
Clients are responsible
for the completeness of information submitted in your personal income
tax returns.
Clients should be aware
that the ATO undertakes significant data matching programs in relation
to interest income, dividend income, capital gains and other forms of
income.
Although we use our best
endeavours to ensure that your income tax returns are accurately prepared
we cannot be responsible for omitted income.
Due to the ATO penalty
regime in relation to lodgement of income tax returns we do not accept
responsibility for late lodgement penalties or general interest charges
in situations where information is not forwarded to us in sufficient
time to enable completion of the work by the required deadlines.
FINANCIAL STATEMENTS
In relation to accounting
work performed, we are required to adhere to established processes encompassing
quality control measures. This assists us in compiling accurate accounting
reports.
These processes are
required to meet our professional standards.
For example - if in providing
us information, an entity's bank account does not reconcile with its
accounting records, our process i.e. bank reconciliation will be required
to ensure that it does.
Accordingly, the mere
provision of income and expense summaries does not equate to a lower
time commitment by us in order to complete our work.
Similarly where we receive
information in the form of accounting reports generated by other accounting
packages such as MYOB, there will often be significant time involved
in adjusting such reports for errors and inaccuracies and in investigating
inconsistencies in the information provided.
Please note however that
we do not provide audit services and our review of client information
does not mean that we will be responsible for incorrectly coded source
data.
TAXATION ADVICE
Our level of fees in
relation to considering taxation issues depends on the professional
time required to address the issue.
Where clients require
specific income tax advice it is our usual practice to provide clients
with a fee estimate prior to commencement of work.
However if we are required
to consider particular income tax rulings or legislation as part of
preparing an income tax return, clients agree that we may spend up to
2 hours of additional professional time without prior specific approval.
It is understood that
this may mean that the total cost of preparing a tax return may be higher
than estimated in the Compliance Plan. Such additional time would be
separately identified on our invoice in respect of the work.
Please note that we do
not adopt a monitoring brief in respect to tax planning/management issues.
It is possible that the
above taxation advice may also constitute 'financial product advice'
within the meaning of that term in the Corporations Act 2001.
We are therefore required
to advise that we are not licensed to provide financial product advice
and tax is only one of the matters that must be considered when making
a decision on a financial product.
You should consider taking
advice from the holder of an Australian Financial Services Licence before
making a decision on a financial product.
The fact that we are
required under the Corporations Act 2001 to provide this warning does
not in any way affect our ability to provide taxation advice and, in
particular, specific tax advice as may be required.
ACTIVITY STATEMENTS
We can play an important
role in assisting you to meet your activity statement obligations.
Instalment Activity
Statements (IAS)
If you are a PAYG instalment
taxpayer we can also assist you with preparation & lodgement of
your personal instalment activity statements.
This process involves
receiving the activity statements directly from the ATO and preparation
of the statement using information provided by you and electronic lodgement
once you have signed the activity statement.
Charge for assisting you in relation to the lodgement of an IAS will
commence at $200 excluding GST.
Business Activity
Statements (BAS)
If you are are in business
we can also assist you with preparation & lodgement of the Business
Activity Statement.
We advise that where
we are requested to handle & lodge a BAS based on your computations
our minimum fee for this service is $400 excluding GST.
However where we are
required to work from source information to prepare & lodge the
BAS then our fees will be determined by our standard professional rates
which are set out in our Engagement Letter issued to you.
The ATO may impose penalties
for incorrect GST claims or for failure to remit the appropriate amount
of GST.
Therefore it is essential
that:
• Tax invoices
are held to substantiate all GST claims. For GST purposes these should
be retained for a minimum of 5 years.
• Accounting
systems that are relied upon to prepare information to be included on
the BAS are regularly monitored to ensure they correctly reflect GST
effects. Data produced by accounting systems must be able to be
vouched to tax invoices.
• Adjustments
are made to the BAS to ensure that any 'adjustment events' that occur
are captured. For example adjustments would be required in a situation
where a credit note has issued or refunds are received from a supplier
in relation to expenses on which GST claims have been made previously;
• All instalment
income is disclosed for the purposes of the PAYG income tax if applicable,
and all applicable PAYG withholding tax on salaries should also be disclosed.
CORPORATE SECRETARIAL
SERVICES
Agency Services
With respect to our services
as ASIC Registered Agents our role encompasses the following:
• liaison
with the Australian Securities and Investments Commission (ASIC) on
behalf of your company;
• managing
the ASIC Annual Review process for your company
• preparation
and lodgement of other statutory documents upon the occurence of specific
events.
As registered ASIC agents
for companies we assist our clients in meeting their Annual Review obligations.
Our annual fee for this service is $350 excluding GST.
Work not undertaken
Please note that as Chartered
Accountants we do not provide legal advice. In addition we do not adopt
a monitoring brief in relation to company solvency.
All statements made in
relation to the solvency of a company are the responsibility of the
Directors of the particular entity.
Registered Office
& Company Secretary Service
Under Section 142 of
the Corporations Act 2001 a company must have a Registered Office. A
document may be served on a company by leaving it at, or posting it
to, the company's Registered Office. As part of our Registered Office
service we also act as Company Secretary for companies that do not carry
on a business.
This enables us to sign
company minutes, ASIC forms and other company documents which can assist
with the smooth functioning of your Company.
Our Registered Office
is provided for an annual fee which will be billed in early January
of each year.
Events requiring
notification to ASIC for a Company
The table below shows
the various events that require notification to ASIC and the timeframe
applicable. Please note that if ASIC is not notified in the required
timeframe fines will apply.
In order that we can
prepare the appropriate documentation within the required timeframes
we need to be notified as soon as possible should any of the following
events occur.
| EVENT |
REQUIREMENT
TO NOTIFY |
| Change to Company
Name |
14 days after passing
of resolution |
| Change to Company
Type |
14 days after passing
of resolution |
| Change to Registered
Office or Principal place of Business |
28 days after address
change |
Change
to Officeholder details including change of address
(Directors, Secretaries, Alternate Directors) |
28 days after change
|
Change of Shareholder
details
(including change of address) |
28
days after address change |
| Issue of shares |
28 days after shares
issued |
| Transfer of shares |
28 days after shares
transferred |
| Cancellation of
shares |
28 days after shares
issued |
| Division/Conversions
of shares |
14 days after division/conversion |
| Reduction of share
capital |
14 days after passing
resolution |
| Change to ultimate
holding company |
28 days after change |
Our fees for preparing
and lodging the appropriate form in connection with an event requiring
notification to ASIC is set at $150 excluding GST.
RECORDS
Subject to any statutory
provisions to the contrary, it is our practice to destroy documents
belonging to us after they are more than 7 years old.
Your acceptance of this
engagement letter includes your consent for us to destroy any documents
that belong to you which have been filed amongst our own papers.
Electronic Communications
We may communicate with
you electronically.
If you provide us with
an email address you agree that we may send personal financial and taxation
information to that email address.
Electronically transmitted
information cannot be guaranteed to be secure or virus or error free
and consequently such information could be intercepted, corrupted, lost,
destroyed, arrive late or incomplete or otherwise be adversely affected
or unsafe to use.
We will use comercially
reasonable procedures to check for the most commonly known viruses before
sending information electronically.
However we will not be
liable to you in respect of any error, omission or loss of confidentiality
arising from or in connection with the electronic communication of information
to you.
You remain responsible
for protecting your own systems and interests in relation to electronic
communications.
If you do not accept
these risks, please notify us in writing that you do not want us to
communicate electronically with you.
Access to working
papers
The working papers for
this engagement, including electronic documents and files, are our property
and constitute confidential information.
Marcarian & Co is
subject to the Quality Control Review Program conducted by The Institute
of Chartered Accountants in Australia.
The work we perform for
you may be selected by the examiners for review. You acknowledge that,
if requested, our files relating to this engagement will be made available.
If you object to being
included in any of these review processes, please advise us in writing
and we will use our best endeavours to exclude this engagement from
such review.