Individual Tax Return Engagement Letter

Author: Duncan Warnock CPA | June, 2025

Purpose of this webpage is to document our engagement letter content for indivdual tax return engagements. This brochure content is to confirm our understanding of the terms of our engagement and the nature and limitations of the services we will provide.

TERMS OF ENGAGEMENT – INDIVIDUAL

Purpose, Scope and Output of the Engagement

This firm (Warnock Accounting Tax Agent Number 25 366 722) will provide Taxation Professional services which will be conducted in accordance with the relevant professional and ethical standards issued by the Account Professional & Ethical Standards Board Limited (APESB), and with the Income Tax Assessment Act 1997 as amended. The extent of our procedures will be limited exclusively for this purpose. As a result, no audit or review will be performed and, accordingly, no assurance will be expressed. Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. However, we will inform you of any such matters that come to our attention.
The engagement will include the operations and procedures of the Client as agreed for Personal Tax Returns. Our professional services are conducted, and the Taxation Returns will be prepared for distribution to the relevant specific organization or party for the purpose specified in the report or as agreed. We disclaim any assumption of responsibility for any reliance on our professional services to any party other than as specified or agreed, and for the purpose which it was prepared. Where appropriate, our report will contain a disclaimer to this effect.

Responsibilities

Clients are responsible for the reliability, accuracy and completeness of the accounting records, and information provided and disclosure of all material and relevant information. Any advice given to the Client is only an opinion based on our knowledge of the Client’s circumstances. Furthermore, a taxpayer has obligations under self-assessment to keep full and proper records to facilitate the preparation of accurate returns.
Clients are required to arrange for reasonable access by us to relevant individuals and documents, and to be responsible for both the completeness and accuracy of the information supplied to us.
A taxpayer is responsible under self-assessment to keep full and proper records 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.
Where the application of a taxation law to your 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 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 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, fuel tax credit or fringe benefits 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.
Under no circumstances should any services provided be regarded as constituting tax advice in relation to a financial product as we are not a licensed financial adviser. Accordingly, should you require such advice you must obtain it from an entity which holds either a full or limited Australian Financial Services (AFS) licence (or which is an authorised representative of an AFS licensee).

Confidentiality

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 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.
We note that as a component of the engagement and as part of our normal commercial practice sensitive documents will be physically transferred from your office to our office and may also be transmitted electronically, including email, transfer and retrieval via portals and transmission via electronic transfer portals. To facilitate this engagement, you expressly consent to the use of sensitive information being transferred between offices. This will include financially sensitive information about you or your associated entities including any related taxation information.
By signing this letter and accepting these services you also acknowledge and agree that your personal information may be stored on cloud based servers which may be located overseas or domestically and on internal servers at our office.

Period of Engagement

This engagement is based on the expected amount of skill & expertise required to complete the Taxation services as agreed. Fee invoices will be issued in line with a billing schedule advised to the Client.
This engagement document will be effective for future years unless we issue an amended one to you.

Ownership of Documents

All original documents obtained from the client arising from the engagement shall remain the property of the client. However, we reserve the right to make a reasonable number of copies of the original documents for our records.
Our engagement will result in the production of Income Tax Returns. Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain the property of the firm. The firm has a policy of exploring a legal right of lien over any client documents in our possession in the event of a dispute. The firm has also established dispute resolution processes.

Confirmation of Terms

Acceptance of our services in conjunction with this information brochure indicates that you understand and accept the arrangements. This information will be effective for future engagements unless we advise you of any change.