Employee Tax Return

The below agreement set out the terms and condition of the engagement between you, Tax Online Canada, a business registered under the laws of Canada (“Tax Online”, “we”, “us”, “our”) and to clarify the nature and extent of services we will provide:

Tax Online, through its approved agent (“Chartered Accountant”), will prepare your 2011 personal income tax return (the “return”). This engagement pertains only to the 2011 tax year, and our responsibilities do not include preparation of any other tax returns that may be due to any taxing authority. Our engagement will be complete upon the delivery of the completed and approved return to you. Thereafter, if elected by you by signing of form T183 – Information Return for Electronic Filing of an Individual’s Income Tax and Benefit Return, Tax Online will electronically file your return with the Canada Revenue Agency (“CRA”) and provide you with a copy of the form. If not elected, you will be solely responsible to file the returns with the CRA.

Your return may be selected for review by the CRA. Any proposed adjustments by the CRA are subject to certain rights of appeal. In the any such event, we will be available upon your written request to represent you during the examination and/or during any appeal.  Any such representation will be the subject of, and governed by, a separate agreement.

We will prepare the returns from information, which you will furnish to us.  It is your responsibility to provide all the information required for the preparation of complete and accurate returns.  We will provide you with questionnaires and/or worksheets (the “Tax Profile”) to guide you in gathering the necessary information. To the extent we render any accounting and/or bookkeeping assistance, it will be limited to those tasks we deem necessary for preparation of the returns.

The timeliness of your cooperation is essential to our ability to complete this engagement.  Specifically, we must receive sufficient information from which to prepare your returns within a reasonable period of time prior to the applicable filing deadline.  Accordingly, if we do not receive your Tax Profile and other information from you by April 15, 2012 we reserve the right to suspend our services or withdraw from this engagement

We will not be held liable for any financial or other losses incurred (such as, without limitation; late filing fees, penalties, interest charged, and other fees) by you due to a delay caused by your own doing, such as not providing or delaying in providing us the required information to complete your tax return.

If we are required to suspend or withdraw from this engagement for the above reason, you will be reasonable for any transaction and administrative cost we incur as a result. These amounts will be deducted against your initial authorized deposit outlined below.

The law provides various penalties and interest that may be imposed when taxpayers underestimate their tax liability.  You acknowledge that any such understated tax, and any imposed interest and penalties, are your responsibility, and that we have no responsibility in that regard.  If you would like information on the amount or circumstances of these penalties, please contact us at inquiry@taxonlinecanada.ca.

IT IS UNDERSTOOD AND AGREED THAT YOUR RESPONSIBILITY AS THE TAXPAYER IS AS FOLLOWS:

(a) The accuracy of the information and completeness of the representations reflected in your return is your responsibility under the Income Tax Act.  You represent that the information supplied to us is, to your knowledge, correct and complete, and fully discloses all of your reporting requirements under the Income Tax Act.

(b) You confirm that you have provided Tax Online with all income and deduction items to be included in your tax return and that they are correct and complete.  You confirm that all sources of income have been disclosed, all deductions were incurred to earn income, and all credits claimed are supported by receipts, including the following specific items:

• All business (including commission, farming, and professional incomes) and rental schedules present the results of operations and include all material transactions.
• All income and benefits from employment have been reported, whether or not they are on the T4 slips.
• All incomes from investment (whether received or not) have been reported, whether or not they are on the T3 and T5 slips.
• All dispositions of a capital nature, and their costs, have been reported.
• All estimates for personal use of automobile, business portion of residence, and other such estimates you have provided are reasonable and supported by usage logs and other evidence.

(c) If you owned certain property outside of Canada totaling more than $100,000 at any time during 2011, it may be necessary for you to declare such ownership in your tax return(s).  There are substantial fines and penalties for non-compliance. You confirm that you have provided Tax Online with the correct and complete information with regards to ownership of, or beneficial interests in, specified foreign property as reported on the Foreign Income Verification Statement (T1135) and you have fully disclosed the related foreign income.

(d) You are not aware of any illegal or possibly illegal acts for which you have not disclosed all facts related thereto.

We will not audit or otherwise verify the data you submit. Accordingly, our engagement cannot be relied upon to disclose errors, fraud, or other illegal acts that may exist.  However, it may be necessary to ask you for clarification of some of the information you provide, and we will inform you of any material errors, fraud or other illegal acts that come to our attention.

Our fees for this engagement are not contingent on the results of our services.  Rather, our fees for this engagement will be based on our standard rates, as set forth on the Tax Online website (http://www.taxonlinecanada.ca). You acknowledge that this range is not a limit to the total fees we may charge for our services, and that our fees may actually exceed that range.  However, in the event that we encounter unusual circumstances that would require us to expand the scope of the engagement, and/or if we anticipate our fees exceeding the aforementioned range, we will adjust our estimate, and obtain your prior approval before continuing with the engagement.

Prior to commencing our services, we require that you provide us with an initial authorized deposit amount. This amount is specified in your online income tax return order, and payable upon receipt. The initial authorized amount 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. Our fees and costs are payable upon delivery of your return. We reserve the right to suspend our services or to withdraw from this engagement in the event that any of our invoices are deemed delinquent.

If we elect to terminate our services for nonpayment, or for any other reason provided for in this agreement, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed your return.

You should retain all the documents, canceled checks and other data that form the basis of income, deductions, and credits.  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, you should review them carefully before you sign them.

In connection with this engagement, we may communicate with you or others via email transmission.  As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee.  Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails 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 the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.

It is our policy to retain engagement documentation for a period of seven years, after which time we will commence the process of destroying the contents of our engagement files. To the extent we accumulate any of your original records during the engagement, those documents will be returned to you promptly upon completion of the engagement.  The balance of our engagement file, other than a copy of your income tax return, which we will provide to you at the conclusion of the engagement, is our property, and we will provide copies of such documents at our discretion and if compensated for any time and costs associated with the effort.

We will maintain in confidence the information you provide us.  Accordingly, your personal information will not be disclosed to individuals outside or used by anyone other than those who are involved in preparing your tax return(s) and/or providing related services, except:

(a)     with your consent;

(b)    as authorized or required by the Personal Information Protection Act (“PIPA”), or other law;

(c)     as authorized or required under the Bylaws and Rules of Professional Conduct or other applicable professional obligations; or

In the event we are required to respond to a subpoena, court order 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 hourly rates, as set forth above, for the time we expend in connection with such response, and to reimburse us for all of our out-of-pocket costs incurred in that regard.

In the event that we are or may be obligated to pay any cost, settlement, judgment, fine, penalty, or similar award or sanction as a result of a claim, investigation, or other proceeding instituted by any third party, and if such obligation is or may be a direct or indirect result of any inaccurate, incomplete, or misleading information that you provide to us during the course of this engagement (with or without your knowledge or intent), you agree to indemnify us, defend us, and hold us harmless as against such obligation.

You agree that any dispute (other than our efforts to collect an outstanding invoice) that may arise regarding the meaning, performance or enforcement of this engagement or any prior engagement that we have performed for you, will, prior to resorting to litigation, be submitted to mediation, and that the parties will engage in the mediation process in good faith once a written request to mediate has been given by any party to the engagement. The results of any such mediation shall be binding only upon agreement of each party to be bound. The costs of any mediation proceeding shall be shared equally by the participating parties.

Any litigation arising out of this engagement, except actions by us to enforce payment of our professional invoices, must be filed within one year from the completion of the engagement, notwithstanding any statutory provision to the contrary.  In the event of litigation brought against us, any judgment you obtain shall be limited in amount, and shall not exceed the amount of the fee charged by us, and paid by you, for the services rendered.

In instances where there is a computational or processing error, or delay in completion of your tax return caused by us, and resulted in the you to incur financial losses (such as a late filing fees, penalties, or interest charged), we will issue a refund to you in the amount of financial loss incurred. However, in no case shall the amount refunded exceed the fee charged. If you believe that you have incurred financial loss caused by us, you must notify us in writing

The terms of this agreement supersede any prior oral or written representations or commitments by or between the parties. Any material changes or additions to the terms set forth will only become effective if evidenced by a written amendment to this agreement, signed by all of the parties.

YOU ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT, UNDERSTAND IT AND AGREE TO BE BOUND BY ITS TERMS AND CONDITIONS.