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Terms of Engagement Letter

1 July 2020 to 30 June 2021

Dear Client

Re:    Engagement of our services for the year ended 30 June 2021

Further to our recent discussions, we are pleased to accept the appointment as your tax agent and now set out our understanding of the scope and terms of this engagement.

We will be responsible for the following:

1.    Preparation of Income Tax Returns.

2.    Advice as requested from time to time.

3.    Preparation of the Annual Financial Accounts, including the Profit and Loss Statement and the Balance Sheet,                   commencing with the 30 June 2018 financial year if applicable.

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 four (4) years after tax become due and payable under the assessment. Furthermore, where there is fraud or evasion there is no time limit on amending the assessment. Accordingly, you should check the return before it is signed to ensure that the information in the return is accurate.

Where the application of a taxation law to your particular circumstances is uncertain you also have the right to request a private ruling which will set out the Commissioner's opinion about the way a taxation law applies, or would apply, to you in those circumstances. You must provide a description of all of the facts (with supporting documentation) that are relevant to your scheme or circumstances in your private ruling application. If there is any material difference between the facts set out in the ruling and what you actually do the private ruling is ineffective.

If you rely on a private ruling you have received, the Commissioner must administer the law in the way set out in the private ruling, unless it is found to be incorrect and applying the law correctly would lead to a better outcome for you. Where 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 credits 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.


Our charge rate for the year ended 30 June 2018 is $240 per hour, which is similar to last year, for all work including telephone calls, liaising, sending and receiving documents to and from the Australian Taxation Office, your Mortgage Broker, Financial Institutions, Family Assistance Office, Child Support Agency, Debt Collection Agencies, Centrelink, and filing.

All fees for work and consultations are due and payable immediately.

It is quite difficult to ascertain how long a given job will take due to specific requirements and complexities of each circumstance. The time taken depends on many factors such as technical issues, quality of records provided, etc. It is important to summarise documents and follow my website page check list to reduce our time.

I receive many emails that require a tax technical answer. Due to the complex nature of tax and what if scenarios due to changing facts I will usually endeavor to conduct these exchanges over the phone as this is usually 10 times faster and less expensive.

The Tax Agents Practitioner's Board requires that I perform due diligence when compiling tax returns and Financial Statements and special purpose reports. The TAPB do not require that I sight every receipt but just large items over $5,000 plus other material items such as motor vehicle log books, purchase and finance contracts and rental property agent's statements, quantity surveyor's reports, purchase and sale contracts of property and property development construction costs > $5,000.

 In regards to Capital Gains calculation I require all these documents plus additional items (see my website check list).

On completion of my work I will send you a copy to review. After any adjustments are made I require that you sign the Electronic Lodgment Declaration Form and return this to me with payment before I submit my documents on your behalf to the Australian Taxation Office or any other entity.

If you are not 100% satisfied with the performance or quality of our work or fees charged you are not required to make any payment however you must find another accountant to lodge your tax returns or other.

The due date for lodgment for most of my client's tax returns is 15 May unless you were late in lodging prior year tax returns or otherwise informed by the ATO. I must receive all your documents and information by 28 February to complete your work by the due date. If you incur a penalty or interest charge as a result of an omission or error caused by our office we will remedy any damages.

In July and August my back logs for Financial Statements are 4 months. This gradually reduces to a few weeks by the 28 February but then blows out to 6 weeks in April.


Kind regards 

David Douglas B.Com, CPA


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:

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the arrangements.

If you would like to discuss any matters in relation to the terms of our engagement or the contents of this letter, please do not hesitate to contact me on 0438 056 841.


Kind regards


David Douglas B.Com, CPA

David Douglas Accountants

PO Box 2124

Ascot  QLD  4007.




Acknowledged on behalf of ............................................






Liability limited by a scheme approved under Professional Standards legislation