Taxation Services can include us acting as your tax agent and would generally include (but not be limited to) the preparation of income tax returns, FBT returns and business activity statements.

Our Obligations
The Tax Agent Services Act 2009 (Cth) (TASA) and taxation administration legislation provide statutory protections for taxpayers who engage registered tax agents.

As your tax agent, we are bound by a statutory Code of Conduct administered by the Tax Practitioners Board (TPB).  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.

Furthermore, we are obliged to advise you of your rights and obligations under the taxation laws in relation to the services we provide to you.

We are not aware of any matter that could significantly influence a decision of you engaging us to provide a tax agent service. The TPB maintains a register of tax agents and BAS agents and you can access this register on the following webpage: Public Register | Tax Practitioners Board (tpb.gov.au).

If you have any complaints about any tax agent services we provide, you can lodge a complaint with the TPB on the following webpage: Complaints | Tax Practitioners Board (tpb.gov.au).

Self-Assessment
The Australian tax system operates as a self-assessment system.  Practically, 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.

For income tax returns, the time limit is generally two years for most individuals and small business taxpayers and four years for all other taxpayers. Please contact us if you would like more information in relation to amendment periods that may apply to taxpayers covered by this engagement letter.

Please note that there are no time limits on the ATO amending an assessment where it believes there has been fraud or evasion.

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

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 depending on the type of taxpayer.

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

60 days from the time the amended assessment is received, or
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.

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.

Right to seek a Private Binding Ruling
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.

Your obligations
The responsibility for the accuracy and completeness of the particulars and information provided by the client rests with you. Any advice given is only an opinion based on our knowledge of the particular circumstances presented to us. Furthermore, a taxpayer has obligations under self-assessment to keep full and proper records in order to facilitate the preparation of accurate returns.

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

A failure to keep the appropriate records may lead to the imposition of penalties and interest.  Substantiation records must be retained for five years for income tax purposes. However, please note that there may be requirements contained in other legislative provisions e.g. the Corporations Act 2001 (Cth), which may require you to keep records for a longer period of time.

Obligation to provide us with records
In order for us 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 and you would not be covered by the safe harbour provisions listed below.

Your rights – the safe harbour provisions
In addition, as a client of a registered tax agent, you have statutory “safe harbour” exemptions from penalties in certain circumstances.  The safe harbour can apply to exempt certain penalties for an error made in a tax return including a failure to lodge on time (FTL) penalty.

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 FTL penalties can also apply where a BAS, Instalment Activity Statement, or FBT return is lodged late.