Engagement Letter

Our Engagement Terms and Conditions

We appreciate the opportunity to work with you on your tax returns (Personal, Business, GST, Payroll). The Canada Revenue Agency imposes penalties upon taxpayers, and upon us as tax preparers, for failure to observe due care in reporting for income tax returns. To ensure an understanding of our mutual responsibilities, we ask all clients for whom we prepare tax returns to confirm the following arrangements with a signature to this engagement letter. (For families, one family member signs on behalf of the entire family.)

This year we will prepare your tax returns (Personal, Business, GST, Payroll) and future or past tax returns from information which you will furnish to us. Please note:

  • We do not audit or verify the data you submit, although we may need to ask you for clarification of some of the information.
  • When you provide all of this information up front, without making subsequent adjustments, this helps us to minimize fees.
  • When we receive additional information or slips from you after preparing your tax return which requires us to redo portions of the tax return, additional fees are applicable.
  • It is your responsibility to provide us with all the information required for the preparation of complete and accurate returns.
  • You should retain all the documents, cancelled cheques and other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority.
  • You have the final responsibility for the income tax returns and, therefore, please review them carefully before you sign them.
  • Our work in connection with the preparation of your income tax returns does not include any procedures designed to discover defalcations or other irregularities, should any exist.
  • You represent that the information you are supplying to us is accurate and complete to the best of your knowledge, that your expenses are supported by records as required by law and are not personal in nature (for example expenditures for clothes, hot tub, household or personal automobile expenses, jewelry, etc. – as compared to genuine business expenses) and therefore non-deductible.

We will use our judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions. The law provides penalties that may be imposed when taxpayers understate their tax liability. For information on the amount or circumstances of these penalties, please contact us.

Your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available, upon request, to provide assistance to you and will render additional invoices for the time and expenses incurred.


Our professional fees will be based on our regular agreed billing rates published on website plus direct out-of-pocket expenses and applicable taxes. Please note:

  • Fees are due when rendered.
  • The tax returns, and any related work, will not be released until fees are paid.
  • Fees for additional services will be established separately.
  • Portal Fee will be charged on all the invoices @ $5 per
  • If we are required by government regulation, subpoena, or other legal process to produce our working papers, or to respond to information requests, we will bill the time incurred based on our regular rates plus direct out-of-pocket expenses and applicable taxes.
  • Payment by credit card will be subject to additional fee of 2.5% on your total invoice.      


Use of Information

  1. It is acknowledged that we will have access to all information about identified individuals (“personal information”) in your custody that we require to complete our Engagement. Our services are provided on the basis that:
  2. You represent to us that management has obtained any required consents for our collection, use, disclosure, storage, transfer and process of personal information required under applicable privacy legislation and professional regulation; and
  3. We will hold all personal information in compliance with our Privacy Statement.



One of the underlying principles of the profession is a duty of confidentiality with respect to client affairs.

Each team member must preserve the secrecy of all confidential information that becomes known during the practice of the profession. Accordingly, we will not provide any third party with confidential information concerning the affairs of Our client. unless:

  1. We have been specifically authorized with prior consent.
  2. We have been ordered or expressly authorized by law or by the Code of Professional Conduct/Code of Ethics; or
  3. The information requested is (or enters into) public domain.



In performing our services, we will send messages and documents electronically. As such communications can be intercepted, misdirected, infected by a virus, or otherwise used or communicated by an unintended third party, we cannot guarantee or warrant that communications from us will be properly delivered only to the addressee. Therefore, we specifically disclaim, and you release us from, any liability or responsibility whatsoever for interception or unintentional disclosure of communications transmitted by us in connection with the performance of this Engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from such communications, including any that are consequential, incidental, direct, indirect, punitive, exemplary or special damages (such as loss of data, revenues or anticipated profits).

If you do not consent to our use of electronic communications, please notify us in writing.

Other Terms of Engagement

Subject to management review and approval, we will carry out such bookkeeping as we find necessary prior to the preparation of the compiled financial information, prepare the necessary federal and provincial income tax returns, and prepare any special reports as required. Management will provide the information necessary to complete the returns/reports and will file them with the appropriate authorities on a timely basis.

It should be noted that our accounting work in the area of GST/HST and other commodity taxes is limited to that appropriate to compile the financial information. Accordingly, we may not detect situations where you are incorrectly collecting GST/HST or incorrectly claiming input tax credits. As you are aware, failure to properly account for the GST/HST could result in you or your company becoming liable for tax, interest, or penalties. These situations may also arise for provincial sales tax, custom duties, and excise taxes.

Other Terms of Engagement (continued^

We will also be pleased to provide other additional services upon request. Such services include income tax planning, GST/HST and PST advice, business financing, management consulting and valuations. Please refer to more services/corporate partnerships on our website.


The working papers, files, other materials, reports, and work created, developed, or performed by us during the course of the engagement are the property of our company, constitute our confidential information and will be retained by us in accordance with our company’s policies and procedures.

During the course of our work, we may provide, for your own use, certain software, spreadsheets, and other intellectual property to assist with the provision of our services. Such software, spreadsheets and other intellectual property must not be copied, distributed, or used for any other purpose. We also do not provide any warranties in relation to these items and will not be liable for any lost or corrupted data or other damage or loss suffered or incurred by you in connection with your use of them.

We retain the copyright and all intellectual property rights in any original materials provided to you.

Governing Legislation

This engagement letter is subject to, and governed by, the laws of the Province of Alberta. The Province of Alberta will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum or to claim that those courts do not have jurisdiction.

Dispute Resolution

You agree that any dispute that may arise regarding the meaning, performance or enforcement of this Engagement will, prior to resorting to litigation, be submitted to mediation.


Our client. hereby agrees to indemnify, defend (by counsel retained and instructed by us) and hold harmless our company (and its partners, agents, or employees) from and against any and all losses, costs (including solicitors’ fees), damages, expenses, claims, demands or liabilities arising out of (or in consequence of):

  1. The breach by Our client, or its directors, officers, agents, or employees, of any of the covenants made by your company herein, including, without restricting the generality of the foregoing, the misuse of, or the unauthorized dissemination of, our engagement report or the financial information in reference the engagement report is issued, or any other work product made available to you by our Company.
  2. The services performed by us pursuant to this engagement, unless, and to the extent that, such losses, costs, damages, and expenses are found by a court of competent jurisdiction to have been due to the negligence of our Company. In the event that the matter is settled out of court, we will mutually agree on the extent of the indemnification to be provided by your company.


Limitation of Liability

Our aggregate liability for all claims, losses, liabilities, and damages in connection with this Engagement, whether as a result of breach of contract, tort (including negligence), or otherwise, regardless of the theory of liability, is limited to the one year fee paid by you. Our liability shall be several and not joint and several. We shall only be liable for our proportionate share of any loss or damage, based on our contribution relative to the others’ contributions and only if your claim is commenced within 24 months or less of the date Our client. should have been aware of the potential claim. In addition, we will not be liable in any event for consequential, incidental, indirect, punitive, exemplary, aggravated, or special damages, including any amount for loss of profit, data, or goodwill, whether or not the likelihood of such loss or damage was contemplated.

Time Frames

We will use all reasonable efforts to complete the Engagement as described in this letter within the agreed upon time frames.

However, we shall not be liable for failures or delays in performance that arise from causes beyond our reasonable control, including any delays in the performance by Our client. of its obligations.


Prior to commencing our services, we require that you provide us with a retainer in the amount of 50% of our fee.

The retainer will be applied against our final invoice, and any unused portion will be returned to you upon our collection of all outstanding fees and costs related to this Engagement.

Costs of Responding to Government or Legal Processes

In the event we are required to respond to a subpoena, court order, government agency or other legal process for the production of documents and/or testimony relative to information we obtained and/or prepared during the course of this Engagement, you agree to compensate us, at our normal hourly rates, for the time we expend in connection with such response and to reimburse us for all of our out-of-pocket costs (including applicable GST/HST) incurred.


You acknowledge and understand that failure to fulfill its obligations as set out in this engagement letter will result, upon written notice, in the termination of the engagement.

Either party may terminate this agreement for any reason upon providing written notice to the other party. If early termination takes place, Our client. shall be responsible for all time and expenses incurred up to the termination date.

Survival of Terms

This engagement letter will continue in force for subsequent Engagements unless terminated by either party by written notice prior to the commencement of the subsequent Engagement.


This engagement letter includes the relevant terms that will govern the Engagement for which it has been prepared. The terms of this letter supersede any prior oral or written representations or commitments by or between the parties. Any material changes or additions to the terms set forth in this letter will only become effective if evidenced by a written amendment to this letter, signed by all of the parties.

If you have any questions about the contents of this letter, please raise them with us. If the services outlined are in accordance with your requirements, and if the above terms are acceptable to you, please sign the copy of this letter in the space provided and return it to us.

We appreciate the opportunity to be of service to your company.


Yours truly,


Tax Return Filers




(we) agree with your understanding of the terms of your engagement as the preparer of my (our) tax return(s) (and foreign reporting forms) as set out in this letter.




Signature                                                                                               Date:


For families, a signature by one family member applies to the whole family. For Corporation, any director and officer who can bind the corporation.