1. Introduction

This document outlines the standard terms and conditions for services provided by Bentleys (Qld) Gold Coast Pty Ltd (Dickfos Dunn).

For the purposes of this document, Dickfos Dunn includes its partners, directors, employees and all its related entities.

This is an important document which sets out our basic terms and conditions of business which, together with our engagement letter, will apply to all work we undertake for you. You should read and understand this document before accepting any of the services offered.

This document must be read in conjunction with our engagement letter. If there is a conflict between these terms and our engagement letter, then the engagement letter shall prevail.

2. Definitions

Agreement means the Terms of Engagement.

Dickfos Dunn means Bentleys (Qld) Gold Coast Pty Ltd ACN 698 656 745, its successors and/or any related entities or any person acting on behalf of and with the authority of Dickfos Dunn.

Business Day means a day on which banks are open for retail banking, other than a Saturday, Sunday or public holiday, in Brisbane, Australia.

CCA means the Competition and Consumer Act 2010 (Cth) as amended, re-enacted or replaced, and includes any subordinate legislation.

Client means the Client (or any person acting on behalf of and with the authority of the Client) named in the Terms of Engagement.

Confidential Information means any information, documents, know-how and data disclosed or made available by one party to the other party but does not include any information which:

1. is in the public domain;
2. on receipt by the other party is already known by that party;
3. is at any time after the date of receipt by the other party, received in good faith by that party from a third party; or
4. required by law to be disclosed by the other party.

Consequential Loss means loss of expected savings, loss of use, loss of opportunity, loss of profit, loss of revenue, increased financing costs, loss arising from delay, or any consequential, special or indirect loss or damage, whether or not the possibility or potential extent of the loss or damage was known or foreseeable, and whether arising from a claim under indemnity, contract, tort (including negligence), statute or otherwise.

Electronic Communication includes email, fax or usage of an electronic signature platform.

Fees means the fees payable for the Services agreed between the Client and Dickfos Dunn and as specified in paragraph 7 (Our Fees).

Force Majeure Event means any of the following events, circumstances or combination of events and circumstances:

1. an act of God, lightning, storm, explosion, flood, cyclone, landslide, bush fire, tsunami or earthquake;
2. an action of terrorism, war (declared or undeclared), blockade, revolution, riot, insurrection, or civil commotion;
3. any pandemic or epidemic;
4. any action, inaction, demand, order, restraint, restriction, requirement, prevention, frustration or hindrance by or of any applicable authority; or
5. the unavailability of any essential equipment, public utilities (such as electricity or water) or other materials.

GST has the same meaning given by the GST Law.

GST Law has the meaning given to “GST Law” in the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

Outsourced Service Provider includes:

1. a service provider listed on the schedule of cloud computing providers and outsourced services ( www.bentleys.com.au/schedule-of-cloud-computing-providers-and-outsourced-services/) that is involved in Outsourcing; and
2. any other service provider engaged by Dickfos Dunn and involved in Outsourcing.

Outsourcing means any activity where Dickfos Dunn engages a third party, on a continuing basis, to perform a business activity that is being, has been, or could be performed by the Outsourced Service Provider to assist with the delivery of Services.

Partner means either the Partner or the Director of the Client (as the case requires).

Personal Information has the meaning set out in the Privacy Act 1988 (Cth).

Services means the scope of the Services set out in our engagement letter or as varied in accordance with this Appendix 1 (Standard Terms and Conditions).

Terms of Engagement means the letter of engagement, and all attached schedules and appendices (as updated from time to time).

3. Acceptance

Where there is more than one Client who has agreed to the Terms of Engagement, the Clients shall be jointly and severally liable for all amounts owing to Dickfos Dunn in connection with this engagement.

None of Dickfos Dunns agents or representatives are authorised to make any representations, statements, conditions or agreements in writing nor is Dickfos Dunn bound by any such unauthorised statements unless those statements are expressed by a Partner/Director or Partners/Directors of Dickfos Dunn.

4. Our services

Dickfos Dunn will provide the Services and will use all reasonable commercial efforts to provide the Services in an efficient and timely manner, using the necessary skill and expertise to an appropriate professional standard.

5. Your obligations

In addition to the obligations set out in the Terms of Engagement, you will promptly provide us with all information that may reasonably be required for the proper performance of our engagement, including access to appropriate members of your staff, records, information, technology, systems and premises. Failure to do so may result in an increase in any cost estimate that we have provided to you and/or a delay in delivery of the Services.

We shall be entitled to rely upon the accuracy of all information provided by you, or by others on your behalf, without independently verifying it.

6. Verification of identity

We are required to comply with applicable anti-money laundering and counter-terrorism financing (AML/CTF) laws. Before we commence or continue certain services, we may need to verify your identity and the identity of any beneficial owners, controllers or persons acting on your behalf.

You must provide the information and documents we reasonably request for these purposes. We may use third-party verification providers and databases to complete these checks.

If the required information is not provided, or we cannot complete the checks to our satisfaction, we may delay, decline, suspend or cease providing the relevant services.

7. Confidentiality

Dickfos Dunn have an ethical duty of confidentiality, which means we must not share or disclose the details or terms of this engagement to anyone, except as otherwise specified in this clause, without your consent unless required by law.

By agreeing to the Terms of Engagement, all parties acknowledge that they may, in the course of the engagement, be exposed to or acquire information that is proprietary or confidential to the other party. Both parties agree to hold Confidential Information in strict confidence, and not to divulge such information except as may be required by law or judicial process, by any persons or bodies responsible for regulating that party’s business or as required by a party’s internal policies.

Your information may be shared with related entities of Dickfos Dunn, for the purposes of providing advice where appropriate.

Our files are subject to review as part of the quality control review program of the Chartered Accountants Australia and New Zealand (CA ANZ), who monitor compliance with professional standards by its members, and also by quality assurance auditors who monitor our regulatory compliance and adherence to quality standards. We advise you that, by agreeing to the Terms of Engagement, you acknowledge that our files relating to this engagement may be made available under these programs.

We may for the purpose of promotional activity, training or similar business purpose, mention that you are a Client. As stated above, we will not disclose any Confidential Information.

8. Privacy

Under the Privacy Act 1988 (Cth) and the Australian Privacy Principles (APPs) we are required to inform you that we collect information about you to assist in performing and promoting our financial, taxation and accounting services. We do not disclose information about you to any person except as required in the course of providing the Services or for ordinary administration of our business.

Where we use cloud computing services, outsourced service providers or AI Tools in connection with our Services, we will do so in a manner consistent with our confidentiality and privacy obligations.

You consent to receiving e-mail newsletters and publications from us. You may opt out from any e-mail newsletters and publications.

You consent to us collecting, using and disclosing personal and sensitive information for the purposes set out in our privacy policy.

Any Personal Information or sensitive information which is provided to or held by us will be held in accordance with our privacy policy.

A copy of our privacy policy can be found on our website www.bentleys.com.au/privacy-policy or you can request a copy by making a written request to our Privacy Officer.

Our contact details are as follows:

Attention: Management Representative
Bentleys Queensland
Level 23, 71 Eagle Street
Brisbane QLD 4000
Phone: (07) 3222 9777
Email: admin@bris.bentleys.com.au

Where you disclose Personal Information regarding a third party (including your directors and employees), you confirm that you have complied with the Act, including the personal information was lawfully collected, that you are entitled to disclose the personal information to us (including that you have made all necessary disclosures and obtained all necessary consents), and that we may use and disclose the personal information in the course of providing our services to you.

9. Disputes and complaints

If you have any concerns about our costs or services, please speak to the person responsible for this engagement, who is identified in our Terms of Engagement. We will use best endeavours to resolve a complaint or dispute to the mutual satisfaction of the parties involved. We may require you to detail your complaint in writing to allow us to fully investigate any concerns that you raise.

Where your complaint concerns a tax agent service or BAS agent service we have provided, you also have the right to make a complaint to the Tax Practitioners Board (TPB) in accordance with their complaints process described here - https://www.tpb.gov.au/complaints.

10. Register of tax agents and BAS agents

The TPB maintains a register with details of registered, suspended, and deregistered tax and BAS agents. This register is available to the public to search at - https://www.tpb.gov.au/public-register/.

You can access Dickfos Dunn’s record directly here - https://myprofile.tpb.gov.au/public-register/practitioner/?ran=26366879.

11. Use of contractors, outsourced third party services, cloud computing and AI tools

We may engage third party contractors, Outsourced Service Providers, cloud computing services and AI Tools in providing the Services to you, including overseas third party service providers. We share information with third parties so we may provide the Services to you.

You consent to us using and sharing information (including Personal Information) with third party contractors, Outsourced Service Providers, cloud computing resources and AI Tools to provide the Services to you. This may be for information storage and transfer, business analytics, document preparation and electronic signatures (where appropriate).

The schedule of cloud computing providers and outsourced services ( www.bentleys.com.au/schedule-of-cloud-computing-providers-and-outsourced-services/) sets out those Providers that we may contract with as at the date of this engagement. We may also engage other Providers not listed in the schedule from time to time to deliver the Services to you.

12. Benefit of advice

Unless otherwise specifically stated in these Terms of Engagement, any advice or opinion relating to our engagement is provided solely for your benefit and may not be disclosed in any way, including publication on any electronic media, to any party and is not to be relied upon by any other party.

Any advice or opinion given is relevant at the time of delivery only. Dickfos Dunn shall not be under any obligation in any circumstance to update any advice or report, oral or written for events occurring after the Services have been delivered or any advice or report has been issued in final form.

Dickfos Dunn does not accept liability for any reliance by a third party on any advice provided by Dickfos Dunn unless this is specifically provided for in the Terms of Engagement.

13. Professional fees

All professional fees for the services provided to you are based on time, degree of skill and acumen required to complete the tasks required, including out of pocket expenses and statutory charges, unless otherwise agreed between the parties.

Our hourly rates (refer to Schedule 2) reflect the level of practice, experience and professional training of that staff member. To ensure that you receive the highest quality of service and value from Dickfos Dunn, we will choose the appropriate staff for the different work required. Rates may be subject to change during the course of our engagement.

If our fee estimate is a fixed amount and the total costs are likely to be higher than that estimated, we will issue you with a revised estimate as soon as conveniently possible setting out the reasons for the likely increase. Fees are billed regularly, and may be billed as work progresses or as agreed.

Our policy is to provide you with value for your professional costs and, at any time, should you not be satisfied with the quality of work or professional fees charged, please contact us.

14. Goods and services tax (GST)

Unless otherwise stated, fee estimates (including hourly charge rates) are exclusive of GST. If GST is payable on any supply made by us to you, you agree that the quoted charges will be increased by the amount of GST payable.

A tax invoice will be issued in respect of our professional services and disbursements, which will incorporate the applicable amount of GST payable.

15. Payment terms

Unless other terms have been agreed to, our terms of payment are strictly 14 days from invoice date. We reserve the right to charge interest on all accounts outstanding in excess of the above 14 days, at the prevailing ATO benchmark interest rate.

If your account exceeds our trading terms and is passed over for collection, you are liable for all reasonable expenses (including contingent expenses such as debt collection commission) and legal costs (on a full indemnity basis) incurred by Dickfos Dunn for enforcement of obligations and recovery of monies due from you to Dickfos Dunn.

In the event of a dispute, or where fees remain unpaid beyond the due date, we reserve the right to suspend the provision of Services until such time as the dispute is resolved or the fees are paid. Suspension of Services will not affect your obligation to pay us for Services rendered to the date of suspension.

In the event of a dispute, or where fees remain unpaid beyond the due date, Dickfos Dunn reserve the right to hold a lien over any property, documents or chattels in the name of, or belonging to, the client that Dickfos Dunn may have in its possession until such time as all outstanding accounts have been paid in full.

16. Credit reporting

You agree that Dickfos Dunn may obtain a consumer credit report containing information about you from a credit reporting agency for the purpose of assessing your credit worthiness. In that event, you agree that if you default on your commitment to Dickfos Dunn, your Personal Information may be disclosed to credit reporting bodies and may be listed on your credit file with a credit reporting agency.

The information which will be collected from or disclosed to a credit reporting agency is limited to the type of information authorised under the Privacy Act 1988 (Cth).

17. Trust money

If our engagement involves the use of trust monies, we will manage those funds in accordance with the APES 310 (Client Monies) and as otherwise authorised and instructed by you.

18. Disclosure of other fees and commissions

We disclose to our clients any commissions or other fees received as a result of work done for that client and will fully comply with any statutory requirements in relation to the disclosure of such information.

19. Trust and trustees

If the client is entering into the Terms of Engagement as trustee of a trust, the client agrees that it is liable both in its own right and in its capacity as trustee of that trust and confirms to Dickfos Dunn that:

1. It has the power and authority pursuant to the trust to enter into the Terms of Engagement;
2. It is entering into these Terms of Engagement for a proper purpose of the trust;
3. It has the right to be indemnified from the trust property for each and every liability that the client may incur under the Terms of Engagement before the beneficiaries of the trust receive any distribution, payment or indemnity;
4. The client will produce on request a stamped copy of the trust deed; and
5. It warrants that it has authority to enter into the Terms of Engagement on behalf of the trust and the client agrees to abide by these Terms of Engagement both personally and in its capacity as trustee.

20. Conflict of interest

Dickfos Dunn has sufficient internal controls in place to ensure that any potential conflict would not affect our ability to provide services to you.

You consent to Dickfos Dunn disclosing your details to its affiliate offices for the purposes of undertaking conflict of interest checks and you consent to information necessary to identify you being made available to our affiliate offices for purposes of their conflict of interest checks.

21. Responsibility for accounting and internal control systems

We advise that responsibility for the maintenance of business accounting and internal control systems rests with you, including prevention and detection of fraud. You will be responsible for the maintenance and keeping of books of account. If any material weakness in your accounting or internal control systems comes to our attention, we will advise accordingly.

It is important to remember that you are responsible for the information contained in any statutory return and that you must retain all necessary supporting documentation to substantiate your transaction. We will not take responsibility for any failure on your behalf to maintain adequate records.

22. Documents

Before we lodge any necessary documentation on your behalf, we will forward documentation to you for approval. We shall endeavour to ensure that documentation is lodged with the relevant departments by the due dates, provided all information and documentation is received in time to allow us adequate time for preparation and lodgement of the documentation.

23. Ownership of documents

All original documents that we obtain from you arising from the engagement remain your property. However, you agree that we may make a reasonable number of copies of the original documents for our records and grant us a worldwide, royalty-free licence to those documents to enable us to provide the services to you.

We retain all copyright in any document (including general journals, spreadsheets, models, working papers, the general ledger, draft financial statements and / or tax returns) prepared by us during the course of carrying out the engagement for you, save for where the law specifically provides otherwise.

24. Retention of documents

Unless you advise us otherwise, we will, on completion of the Services, store the relevant documentation both electronically and/or in hard copy. You authorise us to destroy the files 7 years after the date of the final account rendered by us in this matter. This does not apply to documents (such as current agreements, trust deeds, wills and title documents) left with us for safe custody. These may be scanned and stored electronically with original copies sent back to you, or if agreed stored also in hard copy.

25. Accountant’s letters

At Dickfos Dunns discretion, we may provide accountant’s letters at your request if we have direct access to your relevant financial information, and if it is appropriate to do so. We cannot provide information to financial institutions that we cannot factually verify. For this reason, we will not provide forecasts or opinions as to future financial viability in an accountant’s letter. We will decline to provide an accountant’s letter if we assess that doing so will create unreasonable risk to Dickfos Dunn, is a breach of our professional standards, or if it is outside the scope of our insurance coverage.

26. Standards

We aim to provide the highest standard of professional service and are focused on the concerns of our clients. If, for any reason, you feel you have not received the level of service expected or have an issue to raise, please contact us on how the problem may be resolved.

Furthermore, as members of the CA ANZ, we are subject to the ethical requirements of the CA ANZ and its investigations and disciplinary processes. These requirements cover issues such as Code of Conduct and Ethics, adherence to accounting and auditing standards, requirements to undertake Continued Professional Education and holding trust money in a trust account.

Should there be an issue regarding the ethical or business practices of our firm, such matters may be referred to the CA ANZ. However, as the accounting profession does not have regulated fees, the CA ANZ will not investigate purely fee-based disputes, but may recommend parties seek mediation to resolve such disputes.

27. Indemnities

You agree to indemnify Dickfos Dunn against any and all losses, claims, costs, expenses, actions, demands, damages, liabilities or any other proceedings, whatsoever incurred by Dickfos Dunn in respect of any claim by a third party arising from or connected to any breach by you of your obligations under the Terms of Engagement.

Dickfos Dunn shall not be liable for any losses or claims, expenses, actions, demands, damages or liabilities or any other proceedings arising out of reliance on any information provided by you, which is false, misleading or incomplete.

28. Termination of engagement

This engagement may be terminated by either party. Termination must be effected by written notice and will take effect once we have raised our final invoice, and all outstanding fees have been paid. Until paid, we reserve our rights to exercise a lien over any books, records or other documents that may be in our possession.

Please contact our office should you wish to discuss the termination of the engagement.

29. Limitation of liability

Nothing in these terms excludes, restricts or modifies the application of the provisions of any statute (including the CCA) where to do so would contravene that statute or cause any part of these terms to be void.

You agree that Dickfos Dunns liability for any loss or damage suffered by you in connection with our engagement, including (without limitation) liability for any negligent act, omission or misrepresentation of Dickfos Dunn, shall be limited to the amount of professional fees to which the claim relates. You agree to release Dickfos Dunn from all claims arising in connection with the services provided to the extent that Dickfos Dunns liability would exceed the amount of those professional fees.

We are not liable for any Consequential Loss however caused (including by our negligence), suffered or incurred by you in connection with these terms. Consequential Loss means loss of bargain; loss of revenues; loss of reputation; indirect loss; loss of profits; consequential loss; loss of actual or anticipated savings; loss of use or loss arising from loss of use, lost opportunities, including opportunities to enter into arrangements with third parties; loss or damage in connection with claims against Dickfos Dunn by third parties; and loss or corruption of data.

Notwithstanding the rest of this clause 29, if the CCA or any other legislation states that there is a guarantee in relation to any goods or services supplied by us in connection with the Terms of Engagement and our liability for failing to comply with that guarantee cannot be excluded but may be limited, then our liability for that failure is limited to (at our election):

1. in the case of a supply of goods, our replacing the goods or supplying equivalent goods, repairing the goods, paying the cost of replacing the goods or of acquiring equivalent goods, or paying the cost of having the goods repaired; or
2. in the case of a supply of services, our supplying the services again or paying the cost of having the services supplied again.

To the extent permitted by law, you agree that to the extent that any loss or damage suffered by you is attributable to negligence, fault or lack of care on your part or on the part of any person for whom you are responsible, Dickfos Dunn is not liable for the loss or damage.

If any representations, conditions or warranties are considered to be of importance to you, you should ask that they be incorporated into the Terms of Engagement before it is accepted by you. The Terms of Engagement constitute the whole of the agreement covering our relationship, and Dickfos Dunn will not be liable for any statements, representations or warranties (written or oral), which are not expressly contained in these documents.

Our liability is limited by a scheme approved under Professional Standards Legislation.

30. Force majeure

If Dickfos Dunn is prevented in whole or in part from performing any part of its other obligations under the Terms of Engagement because of a Force Majeure Event, Dickfos Dunn must, within 48 hours after the occurrence of that event, provide you with notice of:

1. full particulars of the Force Majeure Event including its nature and likely duration;
2. the obligations affected by the Force Majeure Event and the extent to which performance of those obligations is affected; and
3. the steps taken or proposed to be taken to rectify the Force Majeure Event.

Dickfos Dunns obligations are suspended to the extent that they are affected by a Force Majeure Event from the date Dickfos Dunn gives written notice under this clause 30 until the cessation of the Force Majeure Event.

Where a Force Majeure Event no longer prevents Dickfos Dunn from performing its relevant obligations under the Terms of Engagement, we will:

1. notify you that we are no longer prevented from performing the relevant obligations; and
2. recommence performance of those affected obligations under the Terms of Engagement.

31. Professional indemnity insurance (PII)

Dickfos Dunn holds professional indemnity insurance of at least the minimum amount prescribed by the relevant regulatory bodies or as required by any other applicable law or authority.

32. Professional Standards Scheme

Dickfos Dunn participate in the CA ANZ Professional Standards Liability Capping Scheme (Scheme), which facilitates the improvement of professional standards to protect consumers and may limit our liability to you in a cause of action.

This Scheme applies to professional accounting services including accounting, bookkeeping, taxation, auditing and assurance, insolvency and corporate reconstruction, management accounting, management consulting, forensic accounting and valuation services.

33. Governing law and jurisdiction

The Terms of Engagement and all aspects of our engagement and our performance of the Services are governed by, and construed in accordance with the laws applicable in the State of Queensland. Both you and we agree to irrevocably submit any disputes arising under this agreement to the exclusive jurisdiction of the courts of Queensland.

34. Electronic communication

The parties consent to the Terms of Engagement being entered into by Electronic Communication, if a full and legible copy of the Terms of Engagement, signed by each party, is sent by Electronic Communication to each other party.

A party may sign the Terms of Engagement by electronic signature that meets the requirements for signature in the Electronic Transactions (Queensland) Act 2001 (Qld).

35. Severability

We agree that each of the promises and undertakings given in the Terms of Engagement are independent from one another and severable.

36. Variation

No variation of the Terms of Engagement will be valid unless confirmed in writing by authorised signatories of both parties.

1. The self-assessment system

The Australian tax system operates as a self-assessment system. This means that when your tax return, Fringe Benefits Tax (FBT) return or Business Activity Statement (BAS) is lodged, the Australian Taxation Office (ATO) accepts the information in the return at face-value and issues you with an assessment notice based on that information. It is important to understand that this does not mean the assessment is final as the ATO can conduct a review or audit of the information provided in the return at a later time, subject to the time limits discussed in the topic below.

2. The Commissioner’s ability to amend an assessment

As explained above, the ATO accepts the information lodged in your return at face value. However, the ATO also has the power to amend the assessment if they find it to be incorrect. The following rules generally apply:

Individuals

1. For most individuals, the ATO can amend an assessment within two years after you receive your notice of assessment. If the individual carries on a business and is not a Small Business Entity, that period extends to four years.
2. If the individual is a partner in a partnership or a beneficiary of a trust, the period is two years. If the partnership or trust carries on business and is not a Small Business Entity, the period extends to four years.

Companies

1. The ATO can amend a company assessment within two years after the company receives a notice of assessment where the company is a Small Business Entity. The same period applies where the company is a partner in a partnership or beneficiary of a trust that is a Small Business Entity.
2. In any other case, the period is four years.

Trustees

1. The ATO can amend an assessment within two years after the trustee receives the notice of assessment if the trust is a Small Business Entity.
2. If the trustee is a partner in a partnership or a beneficiary of a trust that is not a Small Business Entity, that period extends to four years.
3. In any other case, the period is four years.

If the ATO amends an assessment, this will potentially involve apart from increased taxes, penalties and interest. If you discover an error in the information declared in the return, lower penalties generally apply for making a voluntary disclosure.

Note that there are no time limits on the ATO amending an assessment where they believe there has been fraud or evasion.

3. Obligation to keep records

The tax laws specifically require taxpayers to keep records that properly explain the transaction they have entered into.

Individuals

Individuals claiming deductions for work-related expenses are subject to the substantiation rules in the tax laws. This requires taxpayers to keep receipts, invoices etc., of the expenses they incur. Where the expenses relate to a taxpayer travelling interstate or overseas, a travel diary may also need to be kept. Where the expense relates to a motor vehicle, a record of the journeys taken such as a log book may need to be kept.

A failure to keep the appropriate records can lead to the ATO denying a particular deduction which may involve the imposition of penalties and interest. Substantiation records must be retained for five years.

Businesses

The tax laws specifically require a taxpayer that carries on business to keep records that record and explain all the transactions they have entered into. This includes all the documents that explain how the income and expenditure of the taxpayer was determined.

Where the tax laws allow or require a taxpayer to make a choice, election, estimate or calculation, documents containing particulars of these matters must be kept.

All these records must be retained for a period of five years. There are penalties for taxpayers who fail to do so.

4. Obligation to provide complete and accurate records

In order for our practice to be able to lodge returns on your behalf, it is your responsibility to provide us with complete and accurate records. Further, in order to lodge your return on time, we will require you to provide us the relevant information as and when requested.

Where you are unable to provide us with complete and accurate records, we may be unable to prepare and lodge your return. Tax agents are subject to a Professional Code of Conduct contained in the Tax Agent Services Act 2009, which prevents them from acting for a Client where insufficient records or information exists so as to be able to determine the amount of the Client’s income or deductions.

We also reserve the right to question any claims for deductions or credits that in our reasonable judgment might be considered as being excessive, and we may ask for more substantiation or records to prove that such a claim is allowable under the law.

If we believe that a claim is excessive and cannot be substantiated we reserve the right not to include such a claim in your income tax returns or BAS, but you will have the right to lodge an objection after receiving your notice of assessment. There may be further costs in doing so, and we will advise you accordingly.

5. Records for clients operating in cash

Because of the ATO’s concerns with dealings in the cash economy, there are particular recording imperatives for Clients who operate in that sector. In particular, the ATO has a program of “benchmarking” standardised revenue returns for a wide range of cash businesses.

In circumstances where it is dissatisfied with a taxpayer’s records or recording systems, the ATO will often assess income tax and/or GST on what it considers to be an appropriate “benchmark” amount (plus penalties and interest) and then put the taxpayer to the task of disproving that assessment.

Where that occurs, the taxpayer is at a serious disadvantage and can be put to a great deal of cost and effort in disputing the assessment.

Taxpayers who operate in the cash economy are therefore urged to have a robust and reliable system for recording and reporting all cash transactions and to ensure that the recorded figures are accurate.

If you need assistance in setting up or reviewing your recording and reporting systems, we will be happy to do so and will advise you of our rates for doing so on request.

6. Right to seek a private binding ruling

When preparing your return, we may identify one or more issues that are not clear under the tax laws. Where we have pointed out such issues to you, you have a right to request a Private Binding Ruling from the ATO. Upon providing the ATO with all the relevant facts, they will provide you with a ruling setting out their view on the proper tax treatment of the issue requested to be ruled upon.

7. Objecting against an assessment

If the ATO issues you with an assessment that you do not agree with, you have the right to lodge an objection against that assessment. The objection must be lodged with the ATO within either two or four years. As to which period applies, this is determined in the same way as the discussion above under the heading ‘Commissioner’s ability to amend an assessment’.

Where the ATO issues an amended assessment, the period for objecting is the greater of:

1. 60 days from the time the amended assessment is received; or
2. two or four years (whichever is applicable) from the time the original assessment was received.

If you remain dissatisfied with the outcome of the objection, you have the right to have the matter reviewed by the Administrative Appeals Tribunal or to appeal the matter to the Federal Court.

8. Onus of proof falls on the taxpayer

It is important to be aware that in any disputed assessment before the court or the Administrative Appeals Tribunal, the onus of proof is placed on the taxpayer. In other words, if the Commissioner asserts that your income should include a certain amount or that a deduction claimed in a return is not allowed, it will be up to you to establish that the Commissioner’s view is incorrect.

9. ATO correspondence

The ATO is now using electronic, secure delivery of correspondence. When acting as your tax or BAS agent for entities/individuals listed in this letter, you agree we may update your preferred address for service and communication preferences with the ATO on your behalf for all correspondence to be provided to us digitally. This includes activity statement (BAS/IAS/PAYG) notifications and lodgement preferences, if we are providing this service to you. If we are not undertaking activity statement services, then your activity statement notification and lodgement preferences will not change. If you prefer to receive your ATO correspondence via post, you can arrange this with us.

By signing this letter, you declare that the information you have provided to us to set or change your communication preferences is true and correct.

10. Your protections under TASA

The Tax Agent Services Act 2009 (TASA) and complimentary amendments to the applicable taxation administration legislation provide statutory protections for taxpayers who engage registered tax agents.

In particular, as your tax agent, we are bound by a statutory Code of Conduct which is administered by a national Tax Practitioners Board. That Code requires us, amongst other things, to act lawfully in your best interests and with honesty and integrity in the performance of our duties.

In addition, as the Client of a registered tax agent, you have statutory “safe harbour” exemptions from penalties in certain circumstances.

When did the safe harbour provisions commence?

The safe harbour can only apply for returns lodged on or after 1 March 2010.

How does the safe harbour work?

In order to benefit from the safe harbour should the need arise, it is a requirement for you to ensure that you provide us with all of the relevant tax information. This includes any records, or documents we request from you plus any other information relevant to the preparation of your tax return. The information provided must be complete and accurate.

It is equally important that you provide us with this information by the time it is requested so as to allow the return to be lodged by its due date. The safe harbour from late lodgment penalties can also apply where a Business Activity Statement, Instalment Activity Statement, or Fringe Benefits Tax return is lodged late.

What does the safe harbour apply to?

Whilst the safe harbour can apply to exempt the penalty for an error made in a tax return, it is important to note that the tax and interest will be still be payable.

What if the safe harbour does not apply?

Even if you are not eligible for the safe harbour, it is still possible to request the ATO remit or reduce the penalty.