These terms and conditions apply our engagement to our clients for Accounting, Tax and Business Services and the nature and limitations of the services that we provide to our clients.
Purpose, Scope and Output of the Engagement
Quantum Business House Pty Ltd t/as Quantum House Australia (the Firm or Quantum House Australia hereafter) will provide accounting and taxations services, which will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB). The extent of our procedures and services will be limited exclusively for this purpose only. As a result, no audit or review will be performed, and accordingly, 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 that come to our attention.
Non-Compliance of Laws and Regulations
During the course of our engagement, if we identify or suspect non-compliance with laws or regulations has occurred or may occur, we will, as a Member in Public Practice, take steps and actions as set out in Section 225 of the Code. In our response to non-compliance, we will comply with the fundamental principles of integrity and professional behaviour and liaise with you (or those involved with managing your entity) to:
- enable you to rectify, remediate or mitigate the consequences of the identified or suspected non-compliance; or
- deter the commission of the non-compliance where it has not yet occurred; and
- to take such further action as appropriate in the public interest.
We will not disclose details of the non-compliance to any third party without your prior consent unless it is required by law or when we consider it professionally necessary in the public interest. We may also withdraw from the engagement and professional relationship if permissible by law.
We understand that an audit of the Financial Accounts is not required, and therefore we will not be expressing an opinion as to the truth and fairness of those statements. However, we will inform you of any such matters that come to our attention.
Scope of Services
Those services listed below and any other taxation, accounting and corporate secretarial-related work will be prepared for distribution to our clients for the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and any other parties for the agreed purpose. There is no assumption of responsibility for any reliance on our report by any person or entity other than yourself, and those parties indicated above. The report shall not be inferred or used for any purpose other than for which it was specifically prepared. Accordingly, our report may include a disclaimer to this effect.
With respect to Corporate Secretarial engagements, we will be responsible for preparing the required minutes and resolutions for the company as well as reporting to the ASIC when the relevant minutes and resolutions are executed by the director(s) or shareholder(s) of the company. With respect to Corporate Secretarial engagements, you will be responsible for taking the required meeting, resolute the corporate decision and providing the signed minutes and resolutions to us.
Acceptance of Offer
If you accept this offer, you will be regarded as having entered into a costs agreement. This means you will be bound by the terms and conditions set out in this document, including being billed in accordance with it. Acceptance may be in any one of the following ways:
- signing and returning a copy of this document or accepting the terms by other written means, e.g. email; and,
- giving Quantum House Australia instructions after receiving this document
Period of Engagement
The period of engagement will be based on a separate engagement agreement.
Responsibilities
In conducting this engagement, information acquired by us in the course of the engagement is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required or allowed for by law, or with your express consent. We wish to draw your attention to our firm’s system of quality control, which has been established and maintained in accordance with the relevant APESB standard. As a result, our files may be subject to review as part of the quality control review program of CPA Australia or CAANZ which monitors compliance with professional standards by its members. We advise you that by accepting our engagement you acknowledge that, if requested, our files relating to this engagement will be made available under this program. Should this occur, we will advise you.
The Client is responsible for the reliability, accuracy and completeness of the accounting records, particulars and information provided and disclosure of all material and relevant information. Clients are required to arrange for reasonable access by us to relevant individuals and documents and shall be responsible for both the completeness and accuracy of the information supplied to us. Any advice given to the Client is only an opinion based on our knowledge of the Client’s particular circumstances.
We may collect Personal Information 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 the obligations that we each may have under the Privacy Act 1988 (Cth) (as amended) (Privacy Act). The obligations may include notifying the relevant person to whom the personal information relates who we are and how we propose to use their personal information. Where you have collected personal information, you confirm that you have collected the personal information in accordance with the Privacy Act, that you are entitled to provide this personal information to us and that we may use and disclose the personal information for the purpose/s we provide our services to you. We will handle personal information in accordance with the Privacy Act.
You are responsible for ensuring that your business activities are conducted in accordance with laws and regulations. You are also responsible for identifying and addressing any non-compliance by your business, by an individual charged with governance of the entity, by a member of management, or by other individuals working for or under the direction of you.
Taxpayer’s Charter
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 becomes 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 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 you can lodge an objection against the ruling if it relates to income tax, fuel tax credit 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.
Failure to keep appropriate records on tax claims may involve the imposition of penalties and interest, including not maintaining the appropriate records and documents for up to five years. Where those assessments submitted later found to be incorrect, the Commissioner may amend your income tax assessments. In addition to any tax assessed, you may be liable for penalties and interest charges.
Involvement of Other Members in Public Practice
Our firm may commit contracting other members of public practice if this is necessary to perform the services and agreed with the client. Furthermore, our firm may refer some services to other members in public practice in and outside Australia based on an agreement with the client.
Termination of Agreement
Quantum House Australia will not continue to do the Work: if you fail to pay Quantum House Australia’s bills; if you fail to provide Quantum House Australia with adequate instructions within a reasonable time; if you give instructions that are false or misleading; if you engage another accounting practice to advise you on this matter without Quantum House Australia’s consent; if Quantum House Australia has a conflict of interest, or if you indicate to Quantum House Australia that Quantum House Australia has lost your confidence; or for other just cause.
Quantum House Australia will give you at least seven (7) days’ notice of Quantum House Australia’s intention to terminate Quantum House Australia’s agreement with you, and of the grounds on which the notice is based.
You may terminate this agreement at any time. However, if this agreement is a “Packaged Services” agreement with a monthly fee instalment, you are obliged to give us three months’ notice with the agreed annual fee being fully paid.
If the agreement is terminated either by you or Quantum House Australia, you will be required to pay Quantum House Australia’s professional fees and charges for work done, and for expenses and disbursements incurred, up to the date of termination. For lump sum fee matters, you must pay the part of Quantum House Australia’s lump sum fee that Quantum House Australia reasonably estimates, has been incurred in respect of the accounting and tax services provided to you up to the date of termination, plus charges, expenses and disbursements, subject to your right to a costs assessment.
With regard to any unpaid professional fees and disbursements owed by you or any other entity either directed and/or controlled by you, including any trust, each director, trustee and/or partner personally guarantee payment of all professional fees and disbursements owed to Quantum House Australia in this matter.
Retention of your documents and Software Subscription
Quantum House Australia will, on completion of the Work, retain any papers to which you are entitled but leave in Quantum House Australia’s possession (except documents deposited in safe custody) for no more than five (5) years and on the undertaking that Quantum House Australia has your authority to destroy the file five (5) years after the date of the final bill rendered by Quantum House Australia in this matter. Quantum House Australia also holds the right to withhold the documents supplied by the client when there is a dispute regarding the payment of our bill until the full payment is made for the outstanding invoice(s). Also, if Quantum House Australia subscribes an accounting software such as Xero, MYOB and QuickBooks, the Firm has ownership of the subscription of the software. In the case of the termination of the engagement, Quantum House Australia may transfer the subscription ownership to the Client upon full payment of any outstanding tax invoices issued by Quantum House Australia.
Payment/Money on Account
Quantum House Australia may ask you to pay Quantum House Australia in advance, some money on account of payments which will be made to others and our costs. Credit card payments will incur a surcharge of 2.5%.
When we ask you to pay in advance, please make a deposit we ask to our trust account.
Quantum Business House also requires you to make “top-up payments” into its trust account for further work as requested. Where applicable, Quantum House Australia will require a bank cheque for payment in full or part of Quantum House Australia’s professional costs and disbursements.
Quantum House Australia’s continuing ability to act for you depends on you paying our bills on time and providing funds into our Trust Account on a “top-up basis” to keep those trust funds at a level acceptable to Quantum House Australia. Quantum House Australia will not carry out any work on your behalf if there is no payment of funds as requested.
Unpaid Fees
If any fees or disbursements remain unpaid, we will invoice you for and recover from you all our costs involved in the recovery of the fees and disbursements. The payment term for tax invoices is within seven working days. We may charge additional administrative fees and annual 12% p.a. interest on late payments.
Authorisation to Transfer Money from Trust Account
You may authorise Quantum House Australia to receive money directly into Quantum House Australia’s Trust Account including any refunds from the Australian Taxation Office, in furtherance of your work, and to immediately pay Quantum House Australia’s costs, disbursements and expenses upon sending you Quantum House Australia’s bill of costs requesting payment with a notice of withdrawal of trust money. If any fees or disbursements remain unpaid, we will invoice you for our costs included in the recovery of the fees and disbursements.
By agreeing to the terms of this costs agreement, you agree to direct all third parties, including the Australian Taxation Office, to pay Quantum House Australia’s Trust Account all refunds on your behalf.
Your Address
You have informed us that your current address for correspondence with us is as set out at the front of this letter.
You agree to inform us within seven days of changing your address or any other particulars of the new address or the new particulars.
Agreement for Electronic Communication
You permit us to communicate with you using the electronic mail (email) system and our online Client Portal. Electronic communications have the same effect as written communication.
Standard Fees
Principles
We generate our revenue through selling our time and expertise to clients. However, when we provide a service, you are not only just buying a professional’s time but rather utilising the significant wealth of accumulated knowledge and experience of the practice and its people. Each fee-earning professional in our practice maintains accurate time records, and clients are generally billed based on the actual time spent on their behalf.
Hourly rates
Hourly rates are generally set in the engagement stage. Our engagement letter to you specifies which members of our practice are engaging with you and how much their hourly rates are. A standard hourly rate is set for each fee-earning professional member based upon the criteria of experience and ability and also incorporates the continuing education requirements of our professional bodies, particularly in the area of taxation law. If no extenuating circumstances exist, clients are billed using standard hourly rates multiplied by the actual hours worked. It is not uncommon, however, to adjust the fees so determined to recognise:
- Additional time spent in an unfamiliar area; or
- Higher hourly rates due to the unavailability of appropriately skilled staff to perform some tasks;
- The value to the client of the service provided.
Hourly rates vary substantially among staff members – currently from $180 to a high of $450 PLUS GST in our practice. It, therefore, follows that the effective use of appropriate staff to perform routine accounting functions results in the most cost-effective solution for the client. Upon negotiation with the engaging director or partner, a fixed fee can be arranged to incorporate all the above factors.
Telephone calls and emails
Due to the extensive amount of consulting work done by our practice through the use of the phone and email, telephone calls and an email sent out are treated in the same way as any time spent on a client’s behalf. If matters of substance are discussed, the time is charged and billed to the client. Personal calls and emails of a non-business nature are obviously not charged to clients.
Out-of-pocket expenses
Anything spent specifically on behalf of a client is charged to them. This category includes travel, courier and above normal postage costs, photocopying, facsimiles, emails and STD telephone calls. Basic overhead costs are included in the hourly rates.
If an accounting software subscription fee is required for the benefit of the business, we require the payment of the fee by your business. If the software fee is increased by the software company or your business upgrades to the higher version, we have the right to increase the amount of the software fee without signing any further contract with your business.
Liability limited by a scheme approved under Professional Standards Legislation.