Terms of Engagement | Lighthouse Financial

Terms of Engagement

1.0 Engaging us to act

1.1 These terms of engagement will apply to our relationship with you.

1.2 By engaging us to complete taxation and accounting work, you accept the terms of engagement detailed below.

1.3 We will keep all client information confidential and will not disclose any information to third parties, without your express consent, except as required by law.

1.4 Most work undertaken by us will be subject to non-disclosure of a tax advice document pursuant to s 20B of the Tax Administration Act 1994 (TAA).

2.0 What we will provide

2.1 We will use our professional skills to perform the taxation and accounting work required by you. We will perform this work based on information provided by you.

2.1 We will inform you if we notice any omissions or irregularities in the information provided.

2.3 We will provide a written report documenting any tax advice given and the application of any exemptions.

2.4 We will retain legal ownership of working papers and documentation prepared by us.

2.5 We will use our judgment in providing advice based on Inland Revenue determinations, the Income Tax Act 2007, the TAA and any other applicable professional information source.

2.6 All tax positions are subject to review by Inland Revenue. Any proposed adjustments by the Inland Revenue are subject to appeal under part IVA of the TAA. In the event of a review, we will be available upon request to represent you and reserve the right to charge on a time recovered basis to represent you.

2.7 Where applicable, you agree to us linking you to our agency list. This will allow us to discuss your tax affairs with Inland Revenue.

2.8 Where relavent, we will share your information with our other partner businesses (Lighthouse Accounting, Lighthouse Mortgages and Lighthouse Wealth) for the purpose of providing any current or future services you may request.

3.0 What we will not provide

3.1 We will not audit or independently verify the information supplied.

3.2 We will not express any kind of opinion on the accuracy of the material we compile or its suitability for any purpose.

3.3 We will not accept liability in negligence for any reason, to anyone but you. A disclaimer to this effect will be included in our written tax advice.

3.4 Our maximum liability for services rendered under these Terms of Engagement will be limited to the fees paid to us for the work provided.

4.0 What you will do

4.1 You will provide accurate, complete information required to provide the service that you have engaged us for. If applicable, we will provide a checklist to assist you in identifying the information we require.

4.2 You remain responsible for the reliability, accuracy and completeness of any information provided.

4.3 You should retain all documentation that forms the basis of our tax advice for a period of 7 years as required by section 22 of the TAA.

4.4 You will let us know if the tax advice that we provide is intended to be disclosed to a third party, with the exception of Inland Revenue.

4.5 You will allow us to communicate with and obtain relevant information from any third party as required to complete the work you have engaged us for.

5.0 Our fees and terms of credit

5.1 Where possible, we will provide a fixed fee quotation up front to complete the work required. If additional work is required, we will provide a quote prior to undertaking any additional work.

5.2 If we do not provide a fixed fee quotation, our charge out rate for taxation work completed is $185.00 + GST per hour.

5.3 You may ask for an estimate of fees at any time and we will provide one to you based on our assessment of the time required to complete any work.

5.4 We reserve the right to progress bill any work carried out on a fortnightly basis. If we progress bill, the balance of any total amount payable will be reduced by the amount of the progress bill.

5.5 You will pay our fees on time. Invoices for work done are payable within 14 days.

5.6 Client money held in Lighthouse Financial Service’s client trust fund may be used to directly satisfy any payment obligations of that client to Lighthouse Financial Services.

5.7 Late payments will incur a 10% administration charge.

5.8 All costs incurred by us as a result of a default by you, including but not limited to administration charges, debt collection costs, and legal costs between solicitor and client will be payable by you.

5.9 You are required to maintain the confidentiality of our fees and charges

6.0 Additional indemnity

6.1 Except as otherwise provided for, we will not be liable for any loss or damage of any kind whatsoever, arising from the supply of the Services rendered by us to you, including:

  • Consequential loss whether suffered or incurred by you or another person; and
  • Whether in contract or tort (including negligence) or otherwise; and
  • Irrespective of whether such loss or damage arises directly or indirectly from the services provided by us to you.

6.2 You will indemnify us against all claims and loss of any kind whatsoever, however caused, or arising and without limiting the generality of the foregoing of this clause, whether caused or arising as a result of our negligence or otherwise, brought by any person in connection with any matter, act, omission, or error by us, our agents or our employees in connection with the Services rendered.

6.3 Any dispute will in the first instance be referred to mediation for resolution. In the event that resolution by mediation is not achieved to the satisfaction of both parties within 30 days of referral to mediation, either party may then take legal action to resolve the dispute. Nothing in this clause prevents us from taking legal action to enforce payment of any debt due, nor where required to seek interlocutory or injunctive relief.

6.4 If any provision of these terms is invalid, void or illegal or unenforceable the validity existence, legality and enforceability of the remaining provisions will not be affected, prejudiced or impaired. Failure by us to enforce any of these terms will not be deemed to be a waiver of any of our rights or obligations under these terms.

7.0 If you are not happy with the terms of engagement

7.1 You will let us know if any of these terms are unclear or you would like to alter the terms in any way. If your request is reasonable we will redraft them to ensure you are happy.