As your Tax Agent IQ Tax will:

• a)  prepare and lodge taxation returns based on information provided by you; and.
• b)  undertake other work as agreed.

You are reminded that:

• a)   performance of tasks is limited exclusively to those set out in this engagement letter;
• b)   IQ Tax does not undertake an audit or review, and as such no assurance will be expressed; and
• c)   this engagement can not be relied upon to detect or otherwise disclose irregularities (such as fraud, illegalities or the errors of other parties).

Professional Fees and Payments

The professional fees for the services provided will be based on the rates published by IQ Tax at the time of preparation of your return.

All return preparation fees and any other negotiated fee will be payable prior to the commencement of work by IQ Tax.

Disclosure of other fees and commissions

IQ Tax will disclose to clients any commissions or other fees received as a result of work undertaken and will fully comply with statutory requirements in relation to the disclosure of this information.

Documents

Before documentation is lodged on your behalf, drafts will be forwarded for your approval. Documentation will be lodged with the relevant departments by the due dates, provided all information and documentation is received promptly after the Financial Year End or other statutory date. This will allow adequate time for preparation and lodgement.

If you are late in providing information, best efforts will be made to meet deadlines. No responsibility will be accepted for any late lodgement penalties incurred.

Responsibility for Accounting and Internal Control Systems

The responsibility for the maintenance of a business accounting system and internal control systems, including protection against and prevention of fraud, rest with you, the client. You will also be responsible for the maintenance of books of account. This includes any work produced by a third party not engaged by this firm that is to be relied upon. If any material weakness in the accounting systems or internal control systems comes to our notice, you will be advised accordingly.

It is important to remember you are personally responsible for the information contained in any statutory return and that you must retain all necessary supporting documentation to substantiate transactions.

Your return will be prepared without review by IQ Tax of original source documents as you are supplying IQ Tax the information in electronic form. You therefore warrant that the information you have supplied is true and correct, does not contain any deliberate or unintentional material misstatement and you indemnify and forever hold IQ Tax harmless for any loss you suffer as a result of any such misstatement or inaccuracy of the information supplied by you.

Quality Review

Some of IQ Tax’s directors are members of the Institute of Public Accountants, and therefore subject to periodic Professional Practice Quality Assurance reviews. Unless otherwise advised, you are consenting to your files being part of such a quality review. This review is of its client records and not of you as a client and you have full assurances that complete confidentiality will be maintained throughout.

Privacy Statement

IQ Tax is bound by the provisions of the Privacy Act to maintain all your records securely and in accordance with the provisions of that Act. Any breach of these requirements should be notified to the Privacy Commissioner. As noted above under “Quality Review”, your file, unless you specifically forbid it, may be subject to a Quality Review. As a Tax Agent we are subject to the code of professional conduct established by the Tax Agent Services Act 2009 (TASA), this code requires that unless legally required to IQ Tax can not disclose information to a third party without your permission.

By agreeing to this Engagement of Taxation Agent form, you agree to the terms and conditions outlined in our Security & Privacy Statement.

Disclosure and Electronic Transmission of Information

IQ Tax uses professional outsourcing services for the collation and entry of data that relates to the work it performs for you. In order to utilise those services, it is necessary that IQ Tax electronically transmits the information you provide to it to third parties.

Accounting and Record Keeping

In undertaking this engagement, it is understood that you will ensure that:

• a)   the bookkeeping for all business entities are maintained on a regular basis. It is recommended that all bookkeeping and record-keeping tasks be attended to weekly;
• b)   reconciliations of bank accounts, debtors and creditors are performed at the end of each month for each of the business entities;
• c)   a stocktake will be performed during the last weekend in June for each entity holding trading stock.

It is expected that the trial balance of each of the business entities will be completed no later than 15 October.

In respect of the personal Tax Returns for you and your family, it is expected that all relevant information will be collated and forwarded to our office by 30 November.

Ownership of Documents

The final documents to be prepared under this engagement, together with any other original documents, shall remain your property. Documents prepared under this engagement, including general journals, working papers, the general ledger, and draft financial statements, remain the property of IQ Tax at all times. However, IQ Tax will always provide you with copies of any documents you require.

Additional Services

The agreed fee relates to the preparation and lodgement of taxation matters detailed above. This fee does not include the checking and forwarding of original assessments and original payment notices received from the Australian Taxation Office and the Australian Securities and Investments Commission.

You agree that your residential or postal address will be notified to all Government Departments that IQ Tax deals with on your behalf, as the address where that agency may direct all correspondence.

Please note that any additional services or advice requested are not included in this fee. These services will be charged on the basis of the time and skill required to complete the tasks, including any out of pocket expenses. Please note, any correspondence from the Australian Taxation Office or ASIC that does not relate to initial assessments or original payment notices, will be treated as additional services.

Specific services to be provided are as follows:

BAS Returns

BAS returns are prepared quarterly and lodged during the financial year. It is not possible to review the correctness of the underlying financial information as part of the preparation of the quarterly BAS return.

This engagement is for the preparation of the annual accounts at the end of the financial year. Accordingly the quarterly BAS returns will be based upon the financial information provided without review of primary source documents.

In doing so, it is assumed that the financial information provided by you is accurate, that the financial information correctly states the GST position; for example that all input tax credits and GST payable amounts have been correctly recorded; that you have supporting documentation to satisfy the Australian Taxation Office for GST audit purposes; and that you hold valid tax invoices and adjustment notes for all expenditure incurred and for which an input tax credit is being claimed.

It is possible that, when the financial accounts are prepared, discrepancies are noted between the information disclosed in quarterly BAS returns and the annual financial statements. Any corrections and related fees will be documented at this time.

Income Tax Returns

IQ Tax has been engaged to prepare and lodge income Tax Returns for you and/or the business entities in your group (and for your family).

In addition to the basic financial information required to complete these Tax Returns, it is a requirement that taxpayers are able to substantiate their claims and it is expected that all source documentation will be available to allow analysis of the income tax implications of any transaction.

The fee for this service does not cover inquiries or investigations conducted by the Australian Taxation Office.

Client’s disclosure and record keeping obligations

You are required by law to keep full and accurate records relating of your tax affairs. It is your obligation to provide IQ Tax with all information that would be reasonably expected will be necessary to allow it to perform work contemplated under the engagement within a timely manner or as requested. This includes providing accurate and complete responses to questions asked of client by the practitioner. Inaccurate, incomplete or late information could have a material effect on services and/or conclusions.

IQ Tax need not verify the underlying accuracy or completeness of information from you if it appears reasonable. However, if it believes information is missing, incorrect or misleading, it will need to seek further assurance from you.

The Taxation Administration Act 1953 now contains specific provisions that may provide you with “safe harbour” from administrative penalties for incorrect or late lodgement of returns. These safe harbour provisions will only be available to you if, amongst other things, you provide “all relevant taxation information” to IQ Tax in a timely manner (the safe harbour provisions apply from 1 March 2010). Accordingly, it is to your advantage that all relevant information is disclosed to IQ Tax, as any failure by you to provide this information may affect your ability to rely on the “safe harbour” provisions and will be taken into account in determining the extent to which tax practitioners have discharged their obligations to clients. It is your responsibility to show that you have brought all matters to our attention if you want to take advantage of the safe harbours created under new regime.

Client’s rights and obligations under the taxation laws

Taxpayers have certain rights under the taxation laws, including the right to seek a private ruling from the Australian Taxation Office (ATO) or to appeal or object against a decision made by the Commissioner. Taxpayers also have certain obligations under Australian taxation laws, such as the obligation to keep proper records and the obligation to lodge returns by the due date. I/We must keep you informed of any specific rights and obligations that may arise under Australian taxation laws.

Tax Practitioners obligation to comply with the law

IQ Tax has a duty to act in our client’s best interests. However, the duty to act in our client’s best interests is subject to an overriding obligation to comply with the law, even if that may require IQ Tax to act in a manner that may be contrary to your directions. For example, we could not lodge an income tax return that we believe to be false in a material respect.

Previous Returns

It is noted that IQ Tax is not engaged to review the accuracy of previous returns lodged by your organisation including that of the Principals, Partners, Trustees, Directors, Shareholders or Beneficiaries. You have warranted that reliance can be placed on the balance sheet(s) and other financial records presented by you for this purpose.

IQ Tax Pty Ltd

May 2013