TERMS OF ENGAGEMENT
Terms of Engagement for Taxation & Compilation Engagement Services
1. Purpose
This Terms of Engagement for Taxation & Compilation Engagement Services (TE) confirms our understanding of the engagement and the nature and limitations of services provided.
2. Term
2.1 This TE will commence at the time you indicate acceptance, in any form, and will continue until the end of the matter.
3. Objectives and Scope of work
3.1 We will provide you with taxation services & compilation engagement services in compliance with APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code), APES 220 Taxation Services and the Code of Professional Conduct pursuant to Tax Agent Services Act 2009, APES 315 Compilation of Financial Information, and APES 205 Conformity with Accounting Standards.
You will have received as part of your engagement pack our scope of services. This scope is to be read in conjunction with these terms and the engagement letter provided with the scope of services.
3.2 These will be prepared in accordance with the financial reporting framework/basis of accounting described in Note 1 to the financial statements.
3.3 The purpose for which the financial statements will be used is to provide financial information showing the client’s financial position at the financial reporting date stated within their engagement letter or as agreed, typically being 30 June of each financial year, and financial performance for the year then ended. The financial statements will be solely for your use and will not be distributed to other parties.
3.4 As part of our engagement, we will issue our report attached to the financial statements compiled by us, which will describe the financial statements, and the work we performed for the compilation engagement. The report will also note that the use of the financial statements is restricted to the purpose set out in this engagement letter and that use and distribution of our report is restricted to you, as the management of your family group.
3.5 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.
3.6 We will provide the scope of works and applicable outputs within the specified timeframe or within a reasonable period considering the context of the services.
3.7 We acknowledge that you may authorise an Accredited Data Recipient under the Consumer Data Right (‘CDR’) to provide CDR data to us via a Trusted Adviser Insight. We confirm that for this purpose you may nominate someone as your Trusted Adviser and provided that person complies with the definition of a Trusted Adviser under the Competition and Consumer (Consumer Data Right) Amendments Rules (No. 1) 2021.
3.8 Unless otherwise specified in this TE or letter of engagement, audit and assurance or review are not included in this engagement.
4. Our Promise
4.1 We will perform procedures (guided by the APES suite of standards) required that are directly related to the engagement consistent with our Fundamental Principles of integrity, objectivity, professional competence and due care, confidentiality, professional behavior, and identifying, avoiding and dealing with conflicts of interests.
4.2 We will seek to understand your requirements and provide you services confidentially and professionally. Any information pertaining to your affairs, whether it be provided by you, or through a Trusted Adviser Insight via the CDR, will be utilised and stored in an appropriate manner to maintain our professional standards and obligations. Further information on privacy is noted at section 10 of this letter.
4.3 We will document sufficient and appropriate records of the procedures performed for the TE, which may be subject to CPA Australia Best Practice Program assessment under APES 320 Quality Control for Firms.
5. Our obligations
5.1 We are required to comply with the Code of Professional Conduct in the Tax Agent Services Act 2009, the Tax Agent Services (Code of Professional Conduct) Determination 2024, APES 110, APES 220, APES 315 and other applicable legislation and professional standards.
5.2 We will act honestly and with integrity, act lawfully in your best interests, manage conflicts of interest, maintain confidentiality subject to legal duties, provide services competently and take reasonable care in ascertaining your affairs and applying taxation laws.
5.3 We will advise you of materially related rights and obligations under taxation laws, including relevant lodgement, payment, objection, review, private ruling, penalty and interest consequences where applicable to the services we provide.
5.4 We will maintain professional indemnity insurance as required by law or applicable professional standards and will comply with lawful requirements of the Tax Practitioners Board and other relevant regulators.
- of your (or your employer’s) rights and obligations available under taxation law, including any rights that might be available to seek a private ruling and the lodging of objections and appeals against adverse positions adopted by revenue authorities
- of any possible penalties and other legal tax consequences to enable you to make an informed decision.
5.5 We will maintain records of the tax agent services provided to you, including the nature, scope and outcome of those services and, where advice is provided, relevant facts, assumptions and reasoning. These records will be retained for at least five years unless a longer period is required by law.
5.6 We may decline to act, suspend work, withdraw from the engagement, or make disclosures where required or permitted by law, regulation or professional obligation, including where continuing to act would be inconsistent with our obligations under TASA, the Code of Professional Conduct, NOCLAR requirements, AML/CTF obligations or other applicable standards.
5.7 During the course of our engagement, if we identify or suspect that Non-Compliance with Laws or Regulations (NOCLAR) has occurred or may occur, which may have a direct effect on material amounts or disclosures in the financial statements or compliance and may be fundamental to you or your family group’s ability to continue its business or to avoid material penalty, we may:
5.7.1 discuss the matter with the appropriate level of management, those charged with governance or the internal auditor, as appropriate
5.7.2 communicate the non-compliance or suspected non-compliance with you and your family group’s external auditor, unless prohibited by law or regulation
5.7.3 disclose the matter to an appropriate authority even when there is no legal or regulatory requirement to do so; and/or
5.7.4 withdraw from the engagement and the professional relationship where permitted by law or regulation.
5.8 Where appropriate we will inform you of our intention to disclose the matter to an appropriate authority before disclosing the matter. 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 of such imminent breach of law or regulation.
5.9 Anti-Money Laundering and Counter-Terrorism Financing (AML). Where the services we provide are subject to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) or related laws, regulations or regulatory requirements, you acknowledge that we may be required to conduct initial and ongoing customer due diligence, including identifying and verifying you, any person acting on your behalf, your beneficial owners and controllers, and the source of funds or wealth where relevant. You must promptly provide all information and documents we reasonably request for those purposes and notify us of any material change to that information. We may use third-party verification services and may collect, use, retain and disclose information where reasonably necessary to comply with our legal and regulatory obligations. We may also be required to report transactions, activities or suspicions to AUSTRAC or another competent authority and may be prohibited by law from informing you that a report has been made or that information has been disclosed. If we cannot complete or maintain the required due diligence, or reasonably consider that continuing to act would expose us to an unacceptable money laundering, terrorism financing, proliferation financing, sanctions or other financial crime risk, we may delay, decline, limit, suspend or cease providing services, or decline to carry out a transaction, to the extent permitted by law, and we will not be liable for loss arising from doing so in good faith to comply with those obligations.
6. Your obligations
You acknowledge that our services and advice depend on the accuracy, completeness and timeliness of information provided by you or on your behalf. In addition to any obligations set out in the engagement letter, you agree as follows:
6.1 You must provide full, complete, accurate and timely disclosure of all information, records, documents, explanations and instructions relevant to the services we provide.
6.2 You must be truthful in your dealings with us and must not provide information that is false, incomplete or misleading.
6.3 You must promptly notify us if information previously provided to us is or becomes inaccurate, incomplete or misleading, or if your circumstances change in a way that may affect the services we provide or advice previously given.
6.4 You are responsible for keeping all records required by law, including records needed to substantiate income, deductions, GST, employment-related obligations, superannuation and any other tax or reporting position taken.
6.5 You must retain records for at least five years, or for any longer period required by law or reasonably necessary having regard to your circumstances.
6.6 You must review all tax returns, activity statements, financial statements and other documents before authorising us to lodge, issue or finalise them, and must satisfy yourself that they are true, correct and complete.
6.7 If we advise you that a statement to the ATO, TPB or another Australian government agency should be corrected, you must promptly consider that advice and provide instructions. If you do not agree to correct a materially false or misleading statement, or if we consider that continuing to act would be inconsistent with our legal or professional obligations, we may decline to lodge documents, suspend work or withdraw from the engagement.
6.8 You acknowledge that we may rely on information, records, documents and instructions supplied by you or on your behalf without independently verifying their accuracy, completeness or authenticity unless we expressly agree otherwise in writing.
6.9 You acknowledge and understand that our role is to assist you in the preparation and presentation of the financial statements in accordance with the financial reporting framework you have adopted for the financial statements.
6.10 You are responsible for the form and content of the financial information in accordance with an applicable financial reporting framework that is acceptable in view of the intended use of the financial statements and the intended users including the notes disclosure of all relevant information in the financial report.
6.11 You are responsible for the reliability, accuracy and completeness of the particulars and information provided to us, and the accounting records and disclosures of all material and relevant information provided to us for the purpose of compiling the financial statements.
6.12 You are responsible for the judgements needed in the preparation and presentation of the financial statements, including those for which we may provide assistance in the course of the compilation engagement.
6.13 You are responsible for retaining paperwork for as long as legally required.
6.14 You are responsible for your own record keeping relating to your affairs.
6.15 Unless we expressly agree otherwise in writing, we may rely on the information, records, documents and instructions supplied by you or on your behalf without independently verifying their accuracy, completeness or authenticity. You must promptly notify us if any information previously provided is or becomes inaccurate, incomplete or misleading.
6.16 Where our services are subject to AML and counter-terrorism financing laws or requirements, you must promptly provide all information, records and documents we reasonably request to identify and verify you, any person acting on your behalf, and your beneficial owners and controllers, and to establish the purpose and intended nature of the engagement and, where relevant, the source of funds or wealth. You warrant that all information and documents supplied by or on your behalf are accurate, complete, current and not misleading, and you must promptly notify us of any material change. You must provide all reasonable assistance required for initial and ongoing customer due diligence and must not knowingly use our services in connection with unlawful conduct or funds derived from unlawful activity. If you do not comply with this clause, we may delay, decline, limit, suspend or cease providing services, or decline to carry out a transaction, to the extent permitted by law.
7. Third Party Involvement
7.1 We may from time to time engage third party specialist professionals and other public practitioners, where warranted to obtain the advice you need or to assist us to provide our service to you. These may include cloud service providers and outsourced service providers.
7.2 We will seek your consent if third party involvement is likely to exceed the fixed price (if applicable).
7.3 We may engage employees, contractors, consultants, related entities and outsourced service providers located in Australia or overseas to assist in the provision of our services. You consent to us disclosing information reasonably necessary for the performance of those services to such persons. We will take reasonable steps to ensure that each outsourced service provider is subject to appropriate confidentiality, privacy and data security obligations.
7.4 By accepting this engagement, you consent to the outsourcing arrangements described in this clause, including the disclosure of information to persons located in Australia or overseas to the extent reasonably necessary for the provision of our services.
7.5 In providing services to you, we may utilise artificial intelligence, machine learning, automation and other technology-assisted tools to assist with administrative functions, document preparation, data analysis, research, workflow management and other aspects of our services. We remain responsible for the services provided to you and will exercise professional judgement and appropriate supervision over any work product generated with the assistance of such tools. We will take reasonable steps to ensure that any use of such tools is consistent with our professional, ethical, privacy and confidentiality obligations.
8. Fees, Billing & Trust Monies
8.1 If the engagement involves the use of trust monies, we will manage those funds in accordance with APES 310 Client Monies and as authorised by you in the Trust Account Authority Letter or as otherwise instructed by you.
8.2 Our professional fees will be calculated on an appropriate basis as specified in the letter of engagement. If no method is specified, our fees will be calculated on a time-cost basis which is also outlined in your letter of engagement. If no engagement letter is issued invoices will be issued at an hourly rate depending on the level of staff assigned to your matter.
8.3 Our invoices may also include disbursements paid by us. These may include photocopying charges, 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).
8.4 Unless other payment terms are agreed in writing, each invoice is payable within 14 days of receipt. Any amount not paid by its due date bears interest from the due date until payment at the rate of 10% per annum, calculated daily. You must pay all legal costs, collection costs and other expenses incurred by us in recovering or attempting to recover any overdue amount or enforcing our rights under this engagement, on a full indemnity basis. If any amount is overdue, we may, to the extent permitted by law and our professional obligations, suspend or cease work, decline to lodge documents, refuse to progress any matter or transaction, retain documents, and require payment in advance of future fees, disbursements and expenses. We are not liable for any loss arising from the exercise of those rights where the overdue amount has not been paid after reasonable notice.
8.5 Each signatory is liable for all fees, disbursements, interest, recovery costs and other amounts incurred by that signatory and by any company, trust, partnership, individual or other related or family group entity for which services are requested by or with the authority of that signatory. The liabilities of all signatories and relevant clients are joint and several. Each signatory irrevocably and unconditionally guarantees to us the due and punctual payment and performance of all obligations of every such entity under or in connection with this engagement and indemnifies us against any loss arising from a failure by any such entity to pay or perform those obligations. This guarantee and indemnity is continuing, is not discharged by any variation, extension, compromise, insolvency or other act or omission, and may be enforced against a signatory without first taking action against any other person or entity.
8.6 In acting for any company, trust, partnership or other entity, we may accept instructions from its directors, trustees, partners, officers, employees or other authorised persons. Each signatory confirms that they are authorised
to request services for that entity and remains jointly and severally liable, as principal debtor and not merely as surety, for all amounts payable in respect of those services.
8.7 To secure payment of all amounts owing to us under or in connection with this engagement, each client and signatory charges in our favour all of their present and future legal and beneficial interests in any real property and other assets. If any amount owing to us remains unpaid after its due date, each client and signatory consents to us lodging and maintaining a caveat over any real property in which they have an interest to protect our rights under this clause. Each client and signatory must do all things reasonably required by us to give effect to this clause and must pay our costs of enforcing it, including costs associated with lodging, maintaining or withdrawing a caveat, on a full indemnity basis.
8.8 Each client and signatory indemnifies us and our officers, employees, contractors and agents against all loss, liability, damage, claim, cost and expense arising from or in connection with: (a) inaccurate, incomplete or misleading information supplied by or on behalf of the client; (b) a breach of this engagement; (c) a failure or delay in providing instructions, information or documents; or (d) a third-party claim arising from services provided in accordance with the client’s instructions, except to the extent caused by our fraud, wilful misconduct or liability that cannot lawfully be excluded.
9. Ownership of materials
9.1 You own all original materials given to us.
9.2 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.
9.3 We may exercise a lien of your documents in our possession in the event of a dispute, which will be handled in accordance with our firm’s dispute resolution process.
9.4 Subject to the payment of all outstanding professional fees and disbursements owing to us, we will provide you with materials produced by us for you in the event you engage the services of another practitioner and the materials are required by your new practitioner.
10. Privacy
Boss Private Clients is committed to providing quality services to you and this policy outlines our ongoing obligations to you in respect of how we manage your Personal Information.
We have adopted the Australian Privacy Principles (APPs) contained in the Privacy Act 1988 (Cth) (the Privacy Act). The APPs govern the way in which we collect, use, disclose, store, secure and dispose of your Personal Information.
A copy of the Australian Privacy Principles may be obtained from the website of The Office of the Australian Information Commissioner at https://www.oaic.gov.au/.
What is Personal Information and why do we collect it?
Personal Information is information or an opinion that identifies an individual. Examples of Personal Information we collect includes names, addresses, email addresses, phone numbers and tax file numbers.
This Personal Information is obtained in many ways including meetings, correspondence, by telephone and email and from third parties. We don’t guarantee website links or policy of authorised third parties.
We collect your Personal Information for the primary purpose of providing our services to you, providing information to our clients and marketing. We may also use your Personal Information for secondary purposes closely related to the primary purpose, in circumstances where you would reasonably expect such use or disclosure.
You may unsubscribe from our mailing/marketing lists at any time by clicking unsubscribe on our client newsletter.
When we collect Personal Information we will, where appropriate and where possible, explain to you why we are collecting the information and how we plan to use it.
Sensitive Information
Sensitive information is defined in the Privacy Act to include information or opinion about such things as an individual’s racial or ethnic origin, political opinions, membership of a political association, religious or philosophical beliefs, membership of a trade union or other professional body, criminal record or health information.
Sensitive information will be used by us only:
- For the primary purpose for which it was obtained
- For a secondary purpose that is directly related to the primary purpose
- With your consent; or where required or authorised by law.
Third Parties
Where reasonable and practicable to do so, we will collect your Personal Information only from you. However, in some circumstances we may be provided with information by third parties. In such a case we will take reasonable steps to ensure that you are made aware of the information provided to us by the third party.
Disclosure of Personal Information
Your Personal Information may be disclosed in a number of circumstances including the following:
- Third parties where you consent to the use or disclosure; and
- Where required or authorised by law.
Security of Personal Information
Your Personal Information is stored in a manner that reasonably protects it from misuse and loss and from unauthorized access, modification or disclosure.
When your Personal Information is no longer needed for the purpose for which it was obtained, we will take reasonable steps to destroy or permanently de-identify your Personal Information. However, most of the Personal Information is or will be stored in client files which will be kept by us for a minimum of 5 years.
Access to your Personal Information
You may access the Personal Information we hold about you and to update and/or correct it, subject to certain exceptions. If you wish to access your Personal Information, please contact us in writing.
In order to protect your Personal Information we may require identification from you before releasing the requested information.
Maintaining the Quality of your Personal Information
It is important to us that your Personal Information is up to date. We will take reasonable steps to make sure that your Personal Information is accurate, complete and up-to-date. If you find that the information we have is not up to date or is inaccurate, please advise us as soon as practicable so we can update our records and ensure we can continue to provide quality services to you.
Policy Updates
This Policy may change from time to time.
Privacy Policy Complaints and Enquiries
If you have any queries or complaints about our Privacy Policy please email contact us at:
business@bossprivateclients.com.au
If your personal information is disclosed to CPA Australia for the purpose of conducting a CPA Australia Best Practice Program assessment on the services provided, your personal information will be handled as outlined in the CPA Australia Privacy Policy]
10.1 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 about you for the primary purpose of this TE or to third parties by express consent or as required by law. This PI may be stored overseas as outlined in the table below. If you would like to access any PI we might hold about you contact us on (+613) 8602 6100.
10.2 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 will use the PI and that you may disclose the PI to an agent for public accounting services.
10.3 Personal information may be disclosed to our employees, contractors, consultants, related entities and service providers located in Australia and overseas for the purposes of providing services under this engagement. We will take reasonable steps to ensure that recipients are subject to appropriate privacy, confidentiality and data security obligations and use the information only for the purposes for which it is disclosed.
10.4 In providing our services to you, we utilise programs such as APS, iManage, Xero and MYOB using cloud computing provided by The Access Group, ACP Solutions, MYOB and Xero and we rely on their security measures. Please refer to the table below on the location of data storage for these software providers:
|
Software |
Location |
|
Xero |
United States |
|
Myob |
Australia |
|
APS/ The Access Group |
Australia/ New Zealand |
|
IManage |
United States |
|
Active Ledger |
Australia |
We also store client information offline in a data server managed in Australia, which may subject to Australian privacy law.
11. Confidentiality
11.1 We have an ethical duty of confidentiality, which means we must not share or disclose your details of this TE to anyone, except as otherwise specified in this clause, without your consent unless required to by law.
11.2 We may disclose your personal and confidential information details, as part of our working papers of the services provided to you to CPA Australia Ltd, (if requested) for the purposes of conducting a CPA Australia Best Practice Program assessment aimed at maintaining high industry professional standards. Any such disclosure of confidential information does not change any of our commitments to safeguard your information, and the information remains subject to any existing confidentiality obligations. We advise you by signing this letter you acknowledge, our engagement files relating to this assessment will be made available under this program.
12. 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. Our PII cover at the time of this TE is Dual Insurance.
13. Professional Standards Scheme & Limitation of Liability
13. 1 We participate in the CPA Australia Ltd Professional Standards Scheme (Scheme), which facilitates the improvement of professional standards to protect consumers and may limit our liability to you in a cause of action.
13. 2 The Scheme applies to professional accounting services including accounting, bookkeeping, taxation, auditing and assurance, insolvency and corporate reconstruction, management accounting, management consulting, forensic accounting, valuation services.
14. Other
This letter will be effective for future years unless we advise you of its amendment or replacement, or the engagement is terminated.
By signing the engagement letter, and by continuing to instruct us, you confirm that you have received, read, understood and agree to be bound by the engagement letter, these Terms of Engagement and the Terms of Business, including the provisions dealing with your information obligations, TASA/TPB disclosures, fees, payment, indemnities, confidentiality, privacy, AML/CTF obligations and our right to suspend, decline or withdraw from services where required or permitted by law or professional obligation.
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