Below are some of the clauses in our Engagement of Services agreement, from which standard we work.
Our services are provided subject to a full engagement of Services agreement, duly signed by both of us and dated.
Susanne Hipp Accounting Services and Responsibilities
We provide a full range of service options, some of which you may wish to consider for the future:
· To work with you on developing and growing your business so that it reaches your objectives and longer term goals.
· The preparation of financial statements on an annual basis for the calculation of your taxable income.
· Preparation of GST returns and trading results on a regular monthly, two monthly or six monthly periods.
· Keeping you informed on significant changes to tax and other business related legislation.
· Completing your tax return from information provided by you.
· Assisting and advising on the appropriate type of accounting recording system that is suitable to your business.
Our procedures will not include verification or validation procedures. You will remain responsible for the accuracy and completeness of the information given to us. No audit or review engagement will be performed and accordingly no assurance will be expressed. We will prepare the financial statements at your request and for your purposes only and we will not be liable for any loss, claim or demand by any third person.
Due to the limited scope of the work performed in compilation, Susanne Hipp Accounting cannot be relied upon to prevent or detect fraud, internal control weaknesses, errors, illegal acts or other irregularities. Of course, if anything of this nature does come to our attention during preparation of the financial information, we will inform you of this.
Susanne Hipp Accounting will prepare the financial information and reports knowing that the intended use of these is for the client and IRD taxation purposes. The client will need to advise us of any changes to the intended recipients of any financial reports.
Our disclaimer will be attached when distributing the financial statements to third parties.
Any working papers that we prepared while working on the client’s information will remain the property of this firm.
Susanne Hipp is not in the business of giving financial advice and any comments made by us on the subject of investment is not to be interpreted as advice. We recommend you to seek financial advice required from a suitably qualified Financial Advisor.
We will provide you with an efficient and timely service and a completion date can be discussed if required.
It is agreed that you will work with us and provide us with all reasonable and necessary assistance so that we can provide our Services to you.
· Providing us with accurate and complete information necessary to compile financial statements, including completing the annual questionnaire;
· Information to be given to us on a timely basis;
· Updating any information where there has been a material change to the information, including telling us if any of your circumstances change during the course of the Services.
· The responsibility for the accuracy and completeness of the financial statements remains with you;
· Any failure to supply us with all relevant records and information remains with you;
Where Susanne Hipp Accounting prepares GST, PAYE, FBT, Income Tax or any Inland Revenue returns on the client's behalf, this does not absolve you of your responsibility to meet your IRD obligations.
You agree to link your tax records to Susanne Hipp Accounting's agency list at the Inland Revenue Department for all related entities and to make enquiries at the Inland Revenue Department from time to time regarding your tax affairs.
You authorise us to obtain from relevant financial institutions any information necessary to assist with the compilation of your financial statements and tax return.
Privacy and Confidentiality
Your privacy is respected by Susanne Hipp Accounting
We may collect Personal Information and other relevant information about you for the purposes of providing the Services to you. If we do, you authorise us to hold, use and disclose such information as is necessary to affect the purpose. We agree to handle all Personal Information about you in accordance with the Privacy Act 1993 and you may have access to and correct any such Personal Information as provided for under the Act.
Each of us agrees to protect and keep confidential any Confidential Information that is given to us by the other.
Independence is not a requirement for a compilation engagement such as this. However, the ATAINZ Code of Ethics requires us to act objectively and to be, or seen to be, independent. If we are aware that our independence may be compromised for whatever reason, we will disclose this in the financial report
Income Tax Returns
We will prepare income tax returns for the client and associated persons/entities from the Financial Statements you approve and from additional information you provide in writing.
We will assist you to understand the importance and risk of signing these income tax returns as being true and correct statutory records.
We will need you to complete an annual questionnaire to obtain all relevant information to assist in the preparation of your annual income tax returns. It is your responsibility to ensure the final tax returns are a complete and accurate representation of your income and financial position for the year.
We will also assist you with tax planning and discuss options with you in order that you are able to make an informed decision so you may decide upon the proper course of action. All tax advice given is based on current tax legislation or its interpretation. Where you elect to use the estimation provisions in relation to taxation payments, we will advise you of the effects of such an election. Any Use of Money Interest charge due to incorrect estimation would be your responsibility.
Our service includes the following:
a. The use of our firm’s address for the IRD to serve notices.
b. A tax advice letter informing you of the amounts and dates of tax due.
c. Checking your assessment notices and advising you of any legitimate amendments.
d. Assisting you to prepare any objections and advising you of the outcome.
e. Checking penalties and/or use of money interest charges if made. We will check their accuracy and advise you of the amounts and dates due.
It will be your responsibility to ensure payments are made on time.
We understand that your own address is used by the Inland Revenue Department for the serving of all notices and you receive and check assessment notices and ensure all taxes are paid before the penalty dates. No reminders are issued from this office.
Penalty Tax Regime
The tax legislation imposes penalties as well as interest charges for tax short paid as a result of incorrect returns and late payments of tax. This legislation applies to all forms of tax - income tax, GST, FBT, PAYE, etc.
Generally the rules require a taxpayer to either have taken reasonable care or to have an acceptable interpretation if the penalties are not to apply. By using Susanne Hipp to prepare your returns, it could be said you have taken the firm step towards that level of care, but it must be emphasised your obligations will not be fully discharged unless you provide all relevant information to us.
We will provide guidance and assistance so please do not hesitate to discuss any concerns you may have on this matter.
Annual Imputation Return
We will prepare and file the Annual Imputation Return in conjunction with the company’s (if applicable) income tax return.
Goods and Services Tax Returns
We will prepare the GST returns required from information supplied to us. We will be relying on you to obtain and keep all relevant GST tax invoices for the required period of time.
We will sign the GST Return on your behalf. If, for whatever reason, Susanne Hipp or any of our employees are exposed to penalties for doing this, you will indemnify us for these penalties.
We understand that you are responsible for the preparation and filing by due dates of all returns.
We shall however endeavour to reconcile your GST returns to your annual financial statements and advise you of any apparent discrepancy.
We will prepare the PAYE returns required from information supplied to us.
We will sign the PAYE Return on your behalf. If, for whatever reason, Susanne Hipp or any of our employees are exposed to penalties for doing this, you will indemnify us for these penalties.
We understand that you are responsible for the preparation and filing by due dates of all returns.
Accident Compensation Corporation
You authorise us to act as your agent for ACC levy purposes for all associated entities. This authorisation allows us to query and change information on your ACC levy accounts through ACC staff, and through ACC Online Services.
We confirm our understanding that the adequacy and extent of your insurance covers are regularly reviewed by brokers/insurance companies and discussed with you by them and that we are not responsible, nor liable, for this function.
Department of Statistics Returns
We are to prepare Department of Statistics Returns as required.
Fees rendered by our firm are based on the value of time spent on each assignment. There are no additional disbursement costs for telephone calls, travelling, copying etc.
You accept that we will invoice for our services regularly i.e. on a monthly basis and/or on completion of the assignment and our invoices will be due for payment on or by the 20th of the month following invoice (unless other arrangements have been made at the time of accepting the assignment).
In the event the IRD selects your enterprise for review or audit, any work required from our firm will be a separate engagement and we will charge for our time based on the hours of work involved.
On discussion with you, refunds received by Susanne Hipp Accounting on your behalf, from the Inland Revenue Department, may be used to pay any outstanding monies owed by you to Susanne Hipp Accounting.
Late or Overdue Fees
If payment of any fee is not received by the due date we may charge interest on the balance outstanding after the due date, at a rate of 17.5% per annum from due date to date of actual payment.
If a client's debt is passed onto a third party, the client will incur ALL associated costs.
We may withdraw our services and decline to continue further work until the fee is paid in full or until you have agreed an acceptable repayment arrangement with us. Should services be withdrawn we will not be held liable for any penalties or interest charged or accrued as a result of late filing of tax returns or other documents during the period that services are withdrawn.
Either of us may terminate this Agreement:
· at any time by giving the other 30 days written notice; or
· immediately if the other becomes insolvent or otherwise ceases to carry on business or commits any material breach of this Agreement that is either incapable of being remedied
· or is not remedied within 14 days of receipt of a notice requiring the breach to be remedied.
We may terminate this Agreement if:
· you fail to meet your obligations under this Agreement including to pay our Fees within the time specified or to provide us with adequate Information or instructions; or
· there is a change of circumstances beyond our reasonable control (such as auditor independence or regulatory related developments) that prevents us from providing the Services to you.
If this agreement is terminated you agree to pay us the Fees for any work we have done and any expenses we have incurred up to the date of termination
Each of us agrees that we may communicate with each other electronically. You acknowledge that electronic transmissions are inherently insecure, can be corrupted or intercepted, may not be delivered and may contain viruses. Neither of us is responsible to the other for any loss suffered in connection with the use of e-mail as a form of communication between us. You consent to receiving such messages until such time as you notify us in writing that you no longer wish to receive them.
In accordance with the Unsolicited Electronic Messages Act 2007, you consent to receiving emails, texts or other electronic transmissions such as newsletters, notification of seminars, items of interest or promotional material from us, unless you notify us to the contrary.