Example: Client Letter of Engagement
FEE AGREEMENT FOR ACCOUNTING AND TAXATION SERVICES FOR CLIENT
NAME AND ASSOCIATED ENTITIES (“Group”)
Thank you for requesting Gateway Partners Chartered Accountants to provide your
Group with accounting and taxation services (“services”). The entities in the Group are
listed on Schedule A, attached.
This letter confirms the terms and conditions on which we will provide our services to
WORK TO BE DONE
The services shall be as agreed from time to time, but will include:
1. The provision of taxation based structuring advice;
2. The preparation of annual financial compilation reports;
3. The preparation and lodgement of annual income tax returns;
4. Dealing with correspondence received from the Australian Taxation Office;
5. Preparing, or checking and lodging quarterly GST returns;
6. Attending to other taxation matters, where required, including GST, land tax,
payroll tax, FBT etc, including any dealings with or negotiations with the
Australian Taxation Office;
7. Providing taxation and business planning services from time to time; and
8. Accounting, business structuring and related advice as required from time to
For clarity, items 2 and 3 are compliance work.
At the time specific services for a particular project are required, we will discuss with
you the nature of the services required prior to beginning the work and, if you wish, we
will provide you with an estimate of our fees for those services.
This engagement letter does not cover the provision of any other services such as
wealth management, estate planning, life insurance, general insurance etc which we
would be pleased to discuss if you believe those services to be relevant to your
WHO IS TO DO YOUR WORK
The required work will be carried out by one of our Director’s with the assistance of one
of our Client Manager’s who will be your client manager. We may also utilise other
staff, as appropriate. The staff will, in our professional opinion, be suitably qualified for
the task we assign to them.
You authorise us to do whatever is necessary to act on your behalf. We will not ask for
your consent in respect of every action we take, but will consult with you regularly. We
will consult with you before each significant step is taken on your behalf.
Fees billed to you will be calculated by reference to the time spent and the hourly rate
of the accountant responsible for undertaking the work in relation to the matter.
The hourly rate is calculated on a time cost basis in units of 6 minutes (“1 unit”)
The hourly rates will be as set forth on our website- www.gatewaypartners.com.au,
from time to time, or as otherwise provided to you in writing.
You will appreciate it is very difficult for us to be able to provide to you before we
commence the service, an estimate of the time it will take in completing the services.
This is because our fees allow for:-
1. The nature and timeliness of the information you provide;
2. Whether the information has been provided to us in a format which facilitates
entry into our processing software;
3. Your availability to respond to any questions we may have on the information you
4. The complexity of the issues involved; and
5. The seniority of the staff member allocated to undertake the services.
Please note that any estimate we provide will assume there are no unexpected
complications or undue delay in the provision or quality of the data.
By separate cover we will provide you with an estimate of the fee for the annual
compliance work ( i.e. accounts and taxation returns) together with the provision of our
firm as the ASIC registered office, should that service be of assistance to you.
CHANGE IN FEES
Generally our fee rates will change effective 1 July each year. The new rates will take
into account the costs we incur in ensuring that suitably qualified staff is available to
provide the services and other general cost pressures in the market place.
We may from time to time amend the hourly rates referred to on our website or
provided to you in writing, by providing you with a further written notice. Unless you
object to any change in our hourly rates within 14 days of receiving notice of the
change, you are deemed to have agreed with the change proposed.
We do not charge for reasonable levels of internal office expenses such as
photocopying, printing, local telephone calls and faxes. If significant costs are incurred,
we reserve the right to request a reasonable contribution towards these costs.
We will pass on to you the following charges (at cost) for external expenses incurred by
1. External photocopying or printing required;
2. Courier costs;
3. Travel costs; and
4. Other external expenses as agreed with you.
COMPLETION OF WORK
To be fair to each of our clients, work which you deliver to us will, when received, be
attended to on a first in/first out basis.
The entities for which we are providing services will be placed on our "Tax Agent
Lodgement List”. This means that in most circumstances, you will be automatically
granted an extension of time to lodge the group’s Income Tax Returns. Please contact
our office to inquire about your last date for lodgement. If applicable, we will also
register as your agent with the Australian Securities & Investments Commission
THIRD PARTY EXPENSES
If it becomes necessary or advisable in providing our services to obtain the assistance
of third parties, such as solicitors, barristers, consultants, or experts, we will not employ
anyone without your prior permission. We will pass on to you the actual costs of any
such third parties.
GOODS AND SERVICES TAX
All money payable by you to us or third parties engaged by us on your behalf for any
taxable supply is exclusive of Goods and Services Tax (GST).
You must pay all GST, without deduction or set-off, in addition to all other money
payable by you to us or a third party. The amount of GST payable by you will be
calculated by multiplying the money payable for the supply by the current GST rate
(presently 10%) and be payable when you are required to pay for the supply. Gateway
Partner’s ABN is 44 109 847 314.
We will issue a tax invoice for any taxable supply by us to you, which will enable you, if
permitted by the GST law, to claim a credit for GST paid by you. If GST is payable for
a taxable supply by a third party, we will request that party to provide you with a tax
GST EXEMPT TAXES, FEES AND CHARGES
Certain Government Taxes, Fees and Charges are exempt from GST. If we incur any
such fees or taxes when completing the work, we will do so only as your agent.
You have a right to receive an invoice of our costs for work undertaken on your behalf.
Generally, a bill will be sent to you every month with a final bill on conclusion of each
matter. Providing you with a regular invoice is designed to:-
1. Enable you to manage your relationship with us; and
2. Obtain a tax deduction for the fees, where possible in the correct income tax
The bill will provide a brief description of the work done. Please let us know if you
require any more detail.
Unless other arrangements are made before we start the work, we require payment
within 7 days of the date of the bill.
However, we may ask you to pay a sum on commencement of the work. If we so ask,
the amount paid by you at that time will be credited against the final fee rendered for
IF YOUR BILLS ARE OVERDUE OR UNPAID
If your bills are unpaid or overdue at the end of 7 days, we may retain any of your
papers, documents, files or anything held on your behalf until all bills have been paid in
If your bill remains unpaid after the end of 7 days from the date of the invoice, then we
reserve the right to charge interest at the then prevailing Westpac residential standard
variable mortgage rate plus 3% on a compounding basis.
ACTING FOR YOU
We may claim against you if you contribute to any loss that we may suffer in the course
of Gateway Partners doing the work for you.
KEEPING OF YOUR DOCUMENTS
On completion of the work, we will return your files to you and you should retain those
files for 7 years after completion of the work.
Copies of taxation returns, ASIC and other relevant materials must be retained by us
for the statutory period of time, currently 7 years. In terms of the Institute of Chartered
Accountants Ethical Rulings, we shall retain all working papers as they have been
created by us for our use while providing those services to you. These working papers
represent part of our permanent records and do not belong to you.
We will not continue to act for you if you:
1. Do not pay our bills;
2. Fail to give us adequate instructions; or
3. Advise us that we have lost your confidence.
Otherwise, either you or we may terminate this agreement at any time. Before we
terminate this agreement, we will give you 7 days notice setting out the reasons.
If the agreement is terminated, you will be required to pay for all work done and
expenses incurred up to the date of termination within 7 days from the termination date.
If you terminate this agreement and appoint another accountant to provide the services,
we will not provide any information, records or registers whatsoever to your new
accountant unless and until all fees rendered by our firm have been paid in full,
together with any interest.
LIMITATION OF LIABILITY
We also believe it to be fair to limit our professional liability to a reasonable amount.
Therefore, you and we agree that our liability will be limited to the fee rendered for the
professional services we have provided to you which has given rise to the event in
respect of which you have made a claim.
ACCEPTANCE OF THESE TERMS
We urge you to read this letter carefully. If there is anything you do not understand,
you should not accept the terms set out in this letter until we have clarified matters.
Above all, if there is anything you are concerned about we urge you to discuss the
matter with us and if necessary, request a change to the terms set out above.
You may accept these terms:
1. Orally; or
2. By signing and returning to us a copy of this letter; or
3. By continuing to instruct us.
Would you kindly sign the enclosed copy of this engagement letter and return to our
office for our records.
Please do not hesitate to contact us if you have any questions.
We look forward to working with you.
Gateway Partners Pty Ltd
Signature of Acceptance
List of Entities
The following entities are included in this agreement between the parties named in our