Document background
The Tax Consulting Engagement Letter is a crucial document used in Canadian professional practice when establishing a formal relationship for tax advisory services. This document is typically employed at the commencement of a new tax consulting engagement or when significantly modifying an existing arrangement. The letter comprehensively outlines the nature and scope of services, professional fees, and mutual obligations while ensuring compliance with Canadian tax laws, professional standards, and regulatory requirements. It serves multiple purposes: defining the engagement parameters, managing client expectations, limiting professional liability, and meeting professional regulatory obligations. The document must align with provincial professional accounting body requirements, federal tax legislation, and privacy laws, making it an essential risk management tool for tax consulting practices in Canada.
