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Tax Consulting Engagement Letter Template for Nigeria

A professional engagement letter template designed for tax consulting services in Nigeria, compliant with Nigerian tax laws and professional regulations. This document establishes the terms of engagement between a tax consulting firm and their client, outlining the scope of services, professional fees, responsibilities, and terms of the professional relationship. It incorporates requirements from the Federal Inland Revenue Service (FIRS) and the Chartered Institute of Taxation of Nigeria, while addressing specific considerations of Nigerian tax legislation and professional service regulations.

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What is a Tax Consulting Engagement Letter?

The Tax Consulting Engagement Letter is a crucial document used to formalize the professional relationship between tax consultants and their clients in Nigeria. It serves as the foundation for the consulting engagement, clearly defining the scope of services, responsibilities, and terms of the professional relationship. This document is essential for compliance with Nigerian tax regulations and professional standards, including requirements set by the Federal Inland Revenue Service (FIRS) and the Chartered Institute of Taxation of Nigeria. It should be used at the commencement of any tax consulting engagement to establish clear expectations, protect both parties' interests, and ensure compliance with relevant Nigerian laws and professional regulations. The letter typically includes detailed service descriptions, fee arrangements, confidentiality provisions, and specific terms relevant to the Nigerian tax consulting environment.

What sections should be included in a Tax Consulting Engagement Letter?

1. Letter Header and Date: Professional letterhead, date, and reference number

2. Client Address and Salutation: Full name and address of the client

3. Purpose of Engagement: Clear statement of the engagement purpose and acceptance mechanism

4. Scope of Services: Detailed description of tax consulting services to be provided

5. Professional Fees and Payment Terms: Fee structure, billing frequency, and payment conditions

6. Client Responsibilities: Client's obligations in providing information and cooperation

7. Confidentiality and Data Protection: Commitments regarding information security and privacy

8. Professional Standards: Reference to applicable professional standards and compliance

9. Limitation of Liability: Extent and limitations of the consultant's professional liability

10. Term and Termination: Duration of engagement and termination provisions

11. Acceptance and Signature: Signature blocks and acceptance confirmation

What sections are optional to include in a Tax Consulting Engagement Letter?

1. Team Structure: Details of key team members and their roles, useful for larger engagements

2. Conflict Resolution: Dispute resolution procedures, recommended for high-value engagements

3. Sub-contractor Provisions: Terms regarding use of sub-contractors, if applicable

4. Insurance Coverage: Details of professional indemnity insurance, if specifically required

5. International Considerations: Special provisions for cross-border tax matters, if relevant

6. Knowledge Transfer: Terms for training or knowledge sharing, if part of the engagement

What schedules should be included in a Tax Consulting Engagement Letter?

1. Fee Schedule: Detailed breakdown of fees and charging structures

2. Service Description: Detailed scope of services and deliverables

3. Required Information List: List of documents and information required from the client

4. Key Personnel: Profiles and contact details of key team members

5. Compliance Requirements: Specific regulatory and compliance requirements applicable to the engagement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Tax Agreement

Cost

Free to use

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