Dear Client
LETTER OF APPOINTMENT/ENGAGEMENT
The following is the standard letter of appointment applicable to all clients of Lanelle Spangenberg (Registered Tax Practitioner) for preparation of personal tax return compilations.
Taxation – Completion of IT12 on behalf of taxpayer: This letter sets forth our understanding of the terms and objectives of our appointment as accountants and tax practitioners of your requirements and the nature and scope of our services we will provide. The issue of this letter of appointment is recommended practice by The South African Institute of Professional Accountants and the South African Institute of Tax Professionals. It does not seek to limit our professional responsibilities below the standards that are expected of our profession.
It is your responsibility to maintain proper accounting and tax records. Such records should adequately present all receipts, payments, sales, income, purchases, expenses, assets, liabilities and capital. As a minimum you should maintain a bank account and channel all monies received and paid through this account.
Any queries and investigation that we may undertake in respect of supporting evidence are for purposes of enabling us to adequately provide the accounting and related services mentioned, alone, and therefore do not fall outside the description of our appointment.
We confirm that we have adopted SARS request that taxpayers submit their returns via the internet. This reduces the possibility of returns being misplaced or not being processed by SARS. As such all the various tax returns that we are requested to file will be completed via efiling online via the SARS website.
By signing this letter of appointment, you will authorize and give Lanelle Spangenberg mandate to attend to the completion and submission of any returns via SARS efiling (and submit any supporting documents as may be required by SARS or any authority) on your behalf as your agent and for all the information submitted to us in terms of your personal tax return. You will also acknowledge that you have read and understand the terms of our efiling mandate attached as Annexure A (copy on our website), to attend to your efiling and that Lanelle Spangenberg acts merely as your agent, acting at all times on information and instructions supplied by you as our client, and that we rely absolutely on the validity and accuracy of all such information as well as the lawfulness, bone fide, etc of the information you have supplied to us and on your instructions.
Any other taxation services or advice will only be performed based on a direct written request or mandate from you.
The information that we will require from you will need to be supplied on time in order for us to be able to meet SARS and other statutory deadlines. While the information that we require and timelines has already been communicated to you, a general list of template documents will be provided to all clients annually.
Please remember that SARS have now imposed a very stringent penalty regime for the late submission of returns, details of which can also be obtained from the SARS website.
Please always take note of the last line of the tax computation of each taxpayer as this indicates an estimate of your refund or outstanding tax liability. Please make sure you make a note of this, and that it is more or less in line with what we have indicated when we send you your final assessment. If you do not get an assessment notification within 2 months, or it varies considerably from our figures, please notify me by email.
Please also ensure that we have the correct bank details of each taxpayer as SARS now only do a direct transfer, into your bank account, of any refunds.
You must understand that you will always be responsible to SARS and the relevant authorities for the returns and all supporting documentation/information submitted to SARS. This emphasizes the importance to ensure that you submit all the correct and valid information to us timeously and in the format required and that you retain all relevant supporting documentation in your possession in a safe and secure place.
Other Services and General Tax Advice
We will be pleased to assist you generally in tax matters if so required. To enable us to assist you further, timeous notification is required. Due to tax rules frequently changing, you need to ask us to review any advice already given if a transaction is delayed, or if an apparently similar transaction is to be undertaken. It is our policy to confirm in writing, any advice upon which you may wish to rely. If further services and advice are required, a separate engagement letter will be issued.
Retention of Records
During the course of our work we will collect information from you and others acting on your behalf and will return any original documents to you following preparation of your return. You should retain them for a period of five years from the date of submission of your return. This period may be extended if SARS make any further enquiries into your tax return.
Whilst certain documents may legally belong to you, we intend to destroy correspondence and other paperwork which has been stored for longer than 5 years, other than documents which we consider to be of continuing significance. We need to be advised of any particular retention of documents you may require.
Regulatory Requirements
We reserve the right to disclose our files to regulatory bodies in the exercise of their powers.
Quality of Service
We aim to provide a high standard of service at all times. If you would like to discuss with us on any improvements or dissatisfaction of our services, please advise. We undertake to address any complaint on your behalf and promptly advise you accordingly.
Fees
With the exception of the annual tax admin fee, tax returns and monthly accounting (where applicable) fees will be billed separately for each main type of work performed; our fees are attached in Annexure A. Our fees, plus expenses will be billed at appropriate intervals during the course of the year and settlement is due on presentation of our invoices. Interest will be charged on overdue amounts.
Stringent reporting requirements or deadlines imposed by you might require work to be carried out at a higher level than usual or in extreme cases outside normal working hours. This may result in increased costs. Our current maximum and minimum rates for normal work within normal working hours applicable from time to time may be obtained on request.
All invoices are due when received and when work is completed and not when your SARS refund is received (if any). Please refer to Annex A, schedule of services including the prices per return.
Electronic Communication
From time to time we will communicate with you electronically. You must be aware that no guarantee can be given as to the correctness and safety of electronically transferred data. Electronic information can be intercepted, lost, corrupted, negatively affected and unsafe to use. We will take reasonable precautions to trace the known viruses at the time, before the transmission of electronic data.
Thus, notwithstanding any collateral agreement, guarantee or representation, neither we, any partner, staff member or agent (including our Service Suppliers) can be held responsible on any grounds, in any contract, delict (including negligence) or otherwise, for any error or omission resulting from and as a result of the electronic transmitting of information to you. These exclusions of responsibilities shall not apply to us if such actions, omissions or misrepresentations results from criminal, fraudulent or misleading actions of any of our partners, staff members or agents.
All risks connected with sending commercially sensitive information relating to your business are borne by you and is not our responsibility. If you do not accept this risk, you should notify us in writing that e-mail communication is unacceptable.
Work for Other Clients
Our relationship with you will not prohibit or restrict us in any way from rendering services to any other client. Standard internal procedures are in place to ensure that confidential information that is supplied to us as a result of our appointment shall be treated as confidential.
Applicable Law
This engagement letter is governed by South African law and any claims will be subject to the exclusive jurisdiction of the Courts of South Africa. Any claims, howsoever arising, need to be commenced formally by service of a court summons or process initiating arbitration proceedings within two years after the claimant becomes aware (or ought reasonably to have become aware) of the facts which give rise to the claim and, in any event regardless of the knowledge of the claimant, by no later than three years after the date of any alleged breach giving rise to a cause of action. This expressly overrides any statutory provision which would otherwise apply.
Limitation of Liability
The advice which we give to you is for your sole use only and does not constitute advice to any third parties. Our maximum liability for all claims arising out of the services provided shall be limited to an amount equal to the total fees charged. This maximum liability shall be an aggregate liability for all claims from whatever source and howsoever arising. We will not be held liable to you or any cessionary or third party claiming through or on your behalf for any punitive damages whatsoever or for any consequential or other loss or damages beyond the maximum liability specified. We will provide the professional services outlined in this letter with reasonable care and skill. Our advice will be based on interpretation of the law and experience with SARS.
Therefore, the conclusions reached, and views expressed will often be matters of opinion rather than of certainty and we cannot warrant that SARS will necessarily reach the same conclusions. We will not be responsible for any losses, penalties, interest or additional tax liabilities arising from the supply by you or others of incorrect or incomplete information, or from the failure by you or others to supply any appropriate information or your failure to act on our advice or respond promptly to communications from us or SARS.
Similarly, Lanelle's liability in respect of any item of work is limited to a period of 3 years from the completion date of that particular work, notwithstanding the provisions of the Prescription Act No. 68 of 1969 (as amended).
Protection of Personal Information
Our firm will require personal information regarding yourself in order for us to attend to our appointed duties. As such, by signing this Letter of Appointment, you consent (as required in terms of the Protection of Personal Information Bill/Act), to your personal information and that of you being used to enable Lanelle Spangenberg, SARS efiling and general matters that you require us to do for you, from time to time.
Agreement of Terms
Once it has been agreed, this letter will remain effective until it is replaced. We shall be grateful if you will confirm your agreement to the terms of this letter by signing and returning the enclosed copy, or let us know if the terms of our engagement are not in accordance with your understanding. No variation of the terms and conditions of this engagement will be of any force or effect, unless reduced to writing and signed.