Accounting and Taxation Services

Santoro & Co Accounting & Taxation Services Sydney NSW

Terms of Engagement


To accept the appointment as your accountants and tax agents we now set out our understanding of the scope and terms of this engagement.


This work will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB) and with Income Tax Legislation.


To help us prepare your Financial Accounts and Income Tax Returns, you will need to provide us the following:


  1. Copy or access to MYOB/Xero/other bookkeeping/accounting software
  2. Up to date bank statements for “EACH” bank account
  3. Copies of invoices and statements
  4. Any loan documentations
  5. Petty Cash Summary or petty cash receipts
  6. Details of new assets purchased
  7. Up to date credit card statements for each credit card
  8. Listing of superannuation payments
  9. Work in progress confirmation at financial year end
  10. PAYG Withholding details
  11. Interest Income
  12. Details of expenses you would like to claim
  13. Other items as requested from time to time




You acknowledge that it’s your responsibility for the reliability; accuracy and completeness of the accounting records and that you have disclosed to us all material and relevant information.


Our involvement is this type of engagement will not disclose fraud, defalcations or other irregularities which may occur. However, any material weaknesses in the accounting or internal control systems which come to our notice will be drawn to your attention.


Please be aware that:

(a) You are responsible for the accuracy and completeness of the particulars and information provided in relation to taxation 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) A taxpayer has obligations under self assessment to keep full and proper records in order to facilitate the preparation of accurate returns.


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, 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.


 Compilation Engagement


In accordance with APES 315, Special Purpose Financial Statements are prepared for the restricted internal use, solely for preparation of income tax returns. Accountant's disclosure is included in the compilation reports.



Taxation Services

 The objective of the engagement is to prepare Special Purpose Financial Statements which are utilised  in the preparation of income tax returns, BAS and related taxation requirements. 

The 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 5 years after tax becomes due and payable under the assessment. However capital gains information, such as cost base information will need to be kept for the life of the asset.


 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 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, 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.


Involvement of Others


Where, as part of our engagement, the services of an external consultant or expert are required, an estimated cost and timeframe and involvement will be provided to you for your approval.


Ownership of Documents 


The final Financial Statements, Income Tax Returns and other documents we prepared will remain in our possession until fees are paid. 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 until payment is received in full for all outstanding fees.




A quotation of fees will be provided to you prior to commencement of work.


Our fees, which will be billed at the time of completing year end financial reports and income tax returns.


Accounts for services provided will be forwarded to you as work is completed.  Payment of any account is required to be made within 7 days, unless special alternative arrangements are made with us prior to the due date.


Period of Engagement


This engagement will be before the financial year commencing 1 July 2016 to the 30 June 2017. We will not deal with earlier periods unless you specifically ask us to do so and we agree.


This letter will be effective for future years unless we advise you of any change in our arrangement.


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: