YOUR SUPER ACCOUNTANT

Transcription

1 Your Super Accountant P.O. Box 296 Magill, SA 5072 ABN: <Trustee Names>. <Fund Name>.. <Address Line1>,.. <Address Line 2, State, P/C> Subject: Engagement to Provide SMSF Administration Services, Year Ending 30 June 20 <Fund name> To The Trustees, Thank you for the opportunity to provide the Subject services. We look forward to assisting you to selfmanage your super and to fostering a mutually beneficial long term relationship. In accordance with our standard operating procedures (and to satisfy CPA Australia s Public Practice requirements), we request a counter-signed a copy of this letter to record the scope and terms of this engagement. Scope and Responsibilities of the Parties The scope of this engagement is outlined in the Free SMSF Setup, SMSF Administration and Additional Fees & Services pages of our website ( with Annex 1 detailing the Scope and Responsibilities of Parties. Our work will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB). Please be aware that: (a) you are responsible for the accuracy and completeness of the particulars and information provided in relation to the services and this responsibility rests with you; (b) any advice given to you is only an opinion based on our knowledge of your particular circumstances; and (c) This engagement assumes Trustee Declarations have been completed and that trustees are aware of, and comply with their obligations and responsibilities (for details, refer to (d) requirements include the need for trustees to keep full and proper records in order to facilitate the preparation of accurate returns and retain those records for up to ten (10) years. 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. Page 1 of 6

2 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, or the Commissioner fails to issue such a ruling, you can lodge an objection against the ruling if it relates to income 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. Ownership of Documents The final Financial Statements, Income Tax Returns and any other documents which we are specifically engaged to prepare, together with any original documents given to us by you, shall be the property of you. Any other documents brought into existence by us including general journals, working papers, the general ledger, draft financial statements and copies of tax returns, will remain our property at all times. Lien on Documents In relation to any subsequent termination of our services, you are advised that we shall be entitled to retain all documents belonging to you, and any related parties we act for, until payment is received in full for all outstanding fees. Confidentiality and Personal Information Any information acquired by us in the course of our engagement is subject to strict confidentiality requirements. Information will NOT be disclosed by us to industry bodies, financial product /service providers, their agents or any other parties except as required or allowed for by law or professional standards, or with your express consent. Our files may, however, be subject to review as part of the quality control review program of CPA Australia which monitors compliance with professional standards by its members. We advise you that by signing this letter 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 same strict confidentiality requirements apply under this program as apply to us. We may collect Personal Information about 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. Involvement of Others Agreement to this Engagement Letter serves as consent to provide information to an Actuary, Legal Documentation provider and/or 3 rd Party Auditor as required to complete the work. Where, as part of our engagement, the services of another external consultant or expert is required, we will seek your approval. Fees Fees are as published on our website, and may be updated from time to time. Page 2 of 6

3 The hourly rate shall apply if additional time is required to complete the services for reasons outside of our control (eg due to non-compliances and/or where full/final information has not been provided prior to commencement of the work). Any services not covered in the explicit scope of this engagement will be provided under the terms of this Engagement Letter and charged at the hourly rate for our time with any out-of-pocket expenses charged at actual cost plus 15% - unless subject of a separate engagement letter and fee arrangement. Payments Except as specifically detailed below, our fees will be billed as work progresses and payment is required within 7 days, unless special alternative arrangements are made with us prior to the due date. It is our requirement that the Trustees personally guarantee the payment of all accounts for professional fees, including out-of-pocket expenses rendered by us from time to time. Other SMSF Administration fees will be due when we present annual financial statements, trustee s minutes and trustee declaration for signature. Our Free SMSF Setup offer is available to new clients that acquire a SMSF Establishment package via the Documentation Portal on our website. A $275 credit will be provided against the first year s SMSF Administration invoice. This offsets the price of the instantly ed SMSF Establishment package. However, trustees may pay extra to take up the Full Service SMSF Establishment package that includes hardcopies of documents and/or to take up the optional trustee Company Registration. Audit fees will be due upon completion of the annual audit, prior to us lodging the tax return to the ATO. Fees associated with the Documentation Portal on our website are paid via the portal. IF/where clients require Legal Documentation from other sources (eg Cleardocs), payment of the third party fee and plus our time shall be due after we have reviewed your application, but prior to submission to the 3 rd Party Legal Documentation provider (noting 3 rd party advance payment requirements). Period of Engagement This engagement will start on the date of the last signature below. Unless otherwise documented, the first period for which we will be responsible is the year to the last June 30 for existing funds and the year to the next June 30 where we are responsible for a new SMSF Setup. We will not deal with earlier periods unless you specifically ask us to do so and we agree. This engagement document will be effective for future years unless we issue an amended one to you. 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 a 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. Yours Faithfully, On behalf of Your Super Accountant, Melissa McInnes Principal, Your Super Accountant Date:... Page 3 of 6

4 Acknowledged on behalf of the fund by (Trustees or Directors of the fund s Trustee Company): Signature:... Signature:... Name:... Name:... Date:... Date:... Signature:... Signature:... Name:... Name:... Date:... Date:... Annex 1 Scope and Responsibilities of the Parties Step 1: SMSF Setup / Establishment [Not Applicable for Transfers] The process commences upon receipt of a countersigned copy of this engagement letter. Based on client s ordering SMSF Establishment instant download package via the Documentation Portal on our website, we will provide: The Topdocs SMSF Trust Deed detailed below. Comprehensive notes explaining the procedures to establish and maintain the Fund, including the execution and lodgment of the prepared documents Trustee minutes to establish the Fund Member applications, Notices of Compliance (for rollovers and employer contributions) and Trustee consents Product Disclosure Statement for each Member of the Fund Non-Binding Death Benefit Nomination forms Notes on opening a bank account in the name of the Fund Links to Trustee Declaration Forms (ATO issue) and to the Running a self-managed super fund information booklet Forms to stamp the Trust Deed with the Revenue Office in applicable states We will also provide: Tax File Number ('TFN') Registration, TFN notices for the SMSF members Australian Business Number ( ABN ) Registration The Topdocs SMSF Trust Deed: Topdocs provides you with an industry leading SMSF Trust Deed that has a long standing pedigree. Regularly reviewed by a panel of Accountants, Financial Planners, Dealer Groups and Lawyers, the Topdocs Trust Deed is both flexible and current, and includes all provisions presently allowable under the Superannuation legislation including SMSF Borrowing and Account Based Pensions. Drafted closely to the SIS Legislation and Regulations, the Topdocs Trust Deed automatically incorporates minor legislative amendments, ensuring your Deeds stay current for longer. To download a full list of the key features, click on the brochure in the Information Sheet section above. Free access to a support associated with the establishment package. You can choose whether the trustees are individual members or pay extra for the trustee Company Registration available from within the Documentation Portal. Page 4 of 6

5 Step 2: Operate Your SMSF You may now operate your SMSF establishing bank account(s), rolling over existing super funds, making contributions, and investing funds as trustee of your SMSF. We do not have access to your money. You do NOT need to open a specific bank account, share trading account or other financial product to receive this offer and we do NOT receive any commissions. we do not provide investment advice, nor place restrictions on the investments, but you will need to meet trustee responsibilities such as those outlined in including record keeping to support Step 3 below. Step 3: Year-End Tax / Compliance / Administration Processes You are to: To avoid un-necessary re-work and costs, you are to provide a signed copy of Annex B page once all information has been uploaded to our Client Portal and you want us to commence end-of-year SMSF Administration. You also acknowledge that the reliability, accuracy and completeness of the information is your responsibility and that you have disclosed to us all material and relevant information. Confirm approval of the end of year reports we provide by uploading signed copies to Portal (and paying our invoice) prior to submission for the end-of-year audit. Provide any/all information reasonably required by the auditor that we do not already have. We will: Revalue listed SMSF assets to reflect market prices at year end, Prepare & provide Investment Reports, Prepare & provide Member Reports for each member, Prepare & provide Financial Reports, Arrange for the mandatory annual audit to be performed by an independent auditor, Prepare and lodge an annual income tax return for your SMSF, Cover any associated dealings with the Australian Taxation Office (ATO), Calculate your SMSF s tax liability / refund, and Credit $275 against your first year s SMSF Administration fee if the Free SMSF Setup offer detailed in the payment section above applies. Page 5 of 6

6 Annex 2 Checklist of Information Required for End-of-Year SMSF Administration This page includes a non-exhaustive checklist. We request that you retain originals of documents and upload copies to Client Portal ( Description Current Assets Purchased Previously for capital gains cost base calculations Details of all purchases prior to the year for current assets (including date, cost and any fees etc that might form part of the cost base). We include the processing of this detail in our service in order to ensure proper details are available for capital gains calculations upon any future sale. Rollovers and Contributions Rollover benefits statements for any rollovers from prior superfunds into your SMSF. The date, member name, type of contribution (employer or personal) & amount relating to contributions, including non-cash contributions (eg; off market transfer of shares) during the period 1 July 30 June. A notice of intent to claim or vary a deduction is required in the approved form if a member wishes to make a tax deduction for personal super contributions in their individual tax return. For more information, search for Claiming deductions for personal super contributions. Assets Purchased and Sold Documentation detailing all purchases and sales, such as those listed below: o Shares (buy & sell contract notes including any details of bonus shares, rights issues, share buy-backs, dividend reinvestments, share purchase plans, consolidations, returns of capital, IPO s, mergers etc). o Managed funds (purchase/sale confirmations including distribution reinvestments), o any off market transfers, and o details of other assets purchased and sold during the year. o Property investments including details of any limited recourse borrowing arrangements. Assets at Year End Details of all assets owned as at 30 June (eg: Holding statements at year end to confirm the numbers of shares held). Include market values where possible, and certainly for investments not listed on the ASX. Income, Expenses & other Transactions The Fund s Bank Transaction history for the year. Please include bank statements in XLS or CSV formats. Share dividend advice/statements, Distribution and Annual Tax Statements from managed funds. Interest, rent and any other income of the fund. Other Items annual statements for any life or other insurances taken out by the fund (if applicable). Loan documentation, confirming loan, repayment and interest amounts. Copies of any Business Activity Statements that were reported separately to the ATO Other items as requested from time to time or N/A Note: Listings on this page should not be interpreted to clarify what is, is not, allowed by a complying SMSF. We hereby confirm that full and final information has been provided for the year to June _ and we request that end-of-year SMSF Administration commences. Signed: as Trustee for Page 6 of 6