Hot Issues
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Countries producing the most solar power by gigawatt hours
spacer
Illegal access nets $637 million
spacer
Accessing superannuation benefits.
spacer
Does your business have a company Power of Attorney?
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
GrantConnect
spacer
2 in 3 SMEs benefit from instant asset write-off, survey reveals
spacer
Updated guidance on R&D claims
spacer
Do you know how to recover debts?
spacer
Wheat Production by Country
spacer
Types of small business benchmarks
spacer
What is a Commercial Lease?
spacer
ATO warns advisers against suspect R&D tax claims
spacer
The year of workplace law upheaval
spacer
How to Resolve Invoice Payment Disputes
spacer
Raft of revenue tweaks in MYEFO to raise millions
spacer
The Countries that Export the Most Wine in the World
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 1 of, 2022 archive
spacer
Undisclosed income risks hefty asset betterment assessments
spacer
Superannuation Guarantee (SG) increases
spacer
How stress and burnout are different, and why the difference is important
spacer
Accountants ‘have important role to play’ in digital transformation
spacer
ATO launches campaign to target tax withholding on overseas royalties
spacer
ATO releases new draft guidance products impacting private trusts
spacer
GDP by country since 1800
spacer
ATO releases new guidelines to combat identity theft.
spacer
Extension in minimum drawdown rates
spacer
6 tips for small business success in 2022
spacer
‘Shot across the bow’: ATO puts professional firm profit allocations on notice
spacer
Extension of the bring-forward age up to 67
spacer
Government urged to address lingering issues with advice reforms
spacer
Vaccination rates (Dose)
spacer
Beware section 99B
spacer
ATO provides further clarity on DIN process
spacer
Unpaid client invoices placing greater pressure on SMEs
spacer
10 top global corporations since 1998
spacer
Increase in the number of SMSF members
spacer
Single Touch Payroll (STP) – Phase 2
spacer
ATO reiterates tax system incentives
ATO releases new guidelines to combat identity theft.

ATO and the Tax Practitioners Board have developed new client verification guidelines for tax practitioners, with criminals using increasingly sophisticated attempts to steal taxpayer identities.

 

ATO and the Tax Practitioners Board have developed new client verification guidelines for tax practitioners, with criminals using increasingly sophisticated attempts to steal taxpayer identities.

 

In consultation with the Tax Practitioners Board, the ATO has developed client verification guidelines for registered tax practitioners and BAS agents using Online services for agents or practitioner lodgement services through software.

The guideline is to be read in conjunction with the TPB’s Practice Note TPB(PN) 5/2022 – Proof of identity requirements for client verification.

By following the guideline, the ATO said tax practitioners would have met the requirements prescribed by the TPB.

“Failure to take appropriate proof of identity steps to verify a client’s or individual representative’s identity may result in a breach of the Tax Agent Services Act 2009 and disciplinary actions by the TPB,” the ATO warned.

The ATO explained that the guideline is part of the TPB’s and ATO’s transition towards mandating minimum standards of client verification.

“We will continue to consult with the TPB and the tax profession before mandating these minimum requirements. You are encouraged to adopt these standards on a voluntary basis between now and then,” the Tax Office stated.

“These guidelines should be read as minimum requirements. You are encouraged to go beyond these requirements if you still have concerns about a person’s identity, even if the minimum requirements are met.”

Verification requirements

The guideline states that while the ATO does not expect tax practitioners to go back and verify their entire client base, it is asking tax practitioners to perform identity checks on all new clients, including representatives of new clients and new representatives of existing clients.

Tax practitioners should also perform identity checks where they have concerns that existing clients may not be who they say they are, it said.

The guidelines advise against retaining identification documents as this may increase the risk of being targeted by criminals.

“Instead, you should maintain contemporaneous records to demonstrate that proof of identity steps were undertaken,” it stated.

Under the guideline, tax practitioners must verify two separate proofs of identity using one or a combination of methods. The exception is when a primary photographic proof of identity document, such as a drivers licence, can be verified using the visual method.

The guidelines provide details on each of the methods. The visual method involves visually checking a client’s identification documents, which is suitable when interacting with the client in person or by video.

Another method is comparing data provided by the client against data of ATO systems. While this can be used for remote interactions and digital interactions through software, it cannot be used to prove the identity of an individual representative of a client unless the authorised representative is also the client, the guideline cautioned.

The third method is comparing a client’s details on government-issued identity documents against details held by a document verification service (DVS) provider. This method can be used to prove the identity of an individual representative of a client, the guideline stated.

Online agents

The ATO said it recognises that more registered tax practitioners are adopting online practices with minimal agent-client face-to-face or physical contact.

“Online agents who provide services through a web, cloud- or software-based customer portal must adopt stronger and more stringent client verification processes,” it said.

The ATO also warned that where accounting firms are creating an online portal or software, there are additional requirements that they will need to meet to ensure storage, transmission of the data maintains a high level of security.

“For example, you need to ensure that ATO data you access is not open to cybercrime,” the Tax Office said.

The ATO said that strong client verification helps protect tax practitioners, their clients and Australia’s tax and superannuation systems from misuse and abuse due to identity theft and related issues.

“With an ever-increasing reliance on technology and remote work practices, the risks presented by this continue to rise. There are increasingly widespread and sophisticated attempts by criminals to commit refund fraud by stealing taxpayer identities,” the ATO warned.

“This has devastating financial consequences to affected individuals and a flow-on effect to the Australian community. Our experience with tax practitioners affected by identity breaches has highlighted varying levels of discrepancies in client verification practices.”

 

 

Miranda Brownlee 

02 February 2022

accountantsdaily.com.au

site By AcctWeb