Proof of Identity (POI)
Identity protection and identity theft are a growing concern to everyone. Criminals are employing sophisticated methods to imitate identities posing a significant threat to both individuals, businesses and government including our tax and superannuation systems. Such breaches can result in severe financial consequences for the targeted parties.
Registered Tax Practitioners (Tax and BAS agents) play a crucial role in the financial and tax affairs of their clients. Ensuring that clients and their representatives are who they claim to be is not only a matter of professional responsibility but also a legal obligation. Failure to meet these obligations can have far-reaching consequences, not only for agents themselves but also for the integrity of the tax system.
As of 1 July 2023, adhering to the POI rules became a term of using the Online services for Agents (OSfA) – the Tax Office portal for Tax Practitioners. Failure to adhering to it may lead to civil penalties imposed by the Federal Court of Australia
The Tax Professionals Board’s mandates that all registered agents must take appropriate POI steps before providing tax agent services or BAS services and periodically thereafter.
Registered agents must also ascertain and verify the identity of individual representatives who engage them on behalf of clients.
The minimum requirements for verifying a client’s identity differ based on whether the engagement involves an individual client, an individual representative, or a non-individual client.
Registered agents must make and retain records of their assessments regarding the appropriate frequency of POI checks for each ongoing client. Record-keeping is a crucial aspect of compliance.
If you are appointing a new Tax Practitioner, expect to be required to provide the relevant identification documents for you as an individual and if your business, as applicable. Depending on your type of business, you will need to establish a link between your business and your tax practitioner.
Client Agent Linking (CAL)
Client Agent Linking went Live on 13 November Client Agent Linking (CAL) is an ATO initiative intended to improve security over client identity and limit OSfA fraud by agents, their employees and authorised persons.
This change was made by the ATO to strengthen the security of client-to-agent linking so that the client, the agent and the ATO are confident that the client has appointed the agent to access their ATO portal and to deal with their financial affairs accordingly.
When a client wants to appoint a BAS or Tax Agent, they need to obtain their correct name and Tax Practitioner No, then go through the process from Access Manager. The portal will then send a message to the Tax Practitioner, who will accept or decline the invitation accordingly.
If you have any issues with this process, you may contact your tax practitioner, alternatively, you may contact Amal Bousamra, Forthright Bookkeeping, on 0410 527 521 or via email to [email protected].
