In recent times, tax and identity fraud have been fuelled by lack of proper identification processes in tax practitioners’ offices. As a tax practitioner, it is vitally important we are vigilant in undertaking adequate client identification processes. Overall, this will help minimise risks for identity fraud for our clients, our practice and the government.

The Tax Practitioners Board (TPB) have recently released their finalised guidance to help verify our client’s (including their representative/s, if any) identity.

We have begun the implementation of client verification (especially if you establish new entities) to align with Director Identification Numbers and the TPB’s guidelines.

Australian Taxation Office and TPB Guidelines – a comparison

The Board have worked closely with the Australian Taxation Office (ATO) in developing this guidance and ensuring both of their guidelines are aligned to minimise any burden on our client’s.

Minimum Requirements

Before we are able to provide Tax or BAS agent services to our new clients and as an ongoing basis to our existing clients, we must now undertake POI.

The table below provides an overview of the information our clients (new & existing) should provide to verify them along with the documents which can be utilised to show this information.

Information

Individual Clients	Individual clients using a Representative	Non-Individual Clients
1. Full Name 2. Date of Birth or Residential Address	1. Full name of client and representative 2. Dates of Birth or their Residential Address 3. Authority of the representative to engage you on the client’s behalf	1. Full name of the individual representing the non-individual client 2. Indivdual representative’s Date of Birth or Residential Address 3. Non-individual client’s full name and one of the following: – Australian Business Number (ABN) – Australian Company Number (ACN) – Any other additional detail to confirm the legitimacy of the non-individual identity 4. Authority of the individual representative to engage you on the non-individual client’s behalf.

Evidence required

Individual Clients (including individual representatives where applicable)	– One primary photographic identification document (ID) – Where no photo ID is available, both of the following will need to be shown: 1. A primary non-photographic ID 2. A secondary ID – A legal document showing the authority of the individual representative to engage you on the client’s behalf (where applicable).
Non-individual clients	– A document or data that verifies the existence of the non-individual client, and – A legal document showing the authority of the individual representative to engage you on the client’s behalf.

Examples of Identification documents

We will welcome original or certified copies of the original documents for identification purposes.

When we will be sighting these documents, we will ensure the name, address and date of birth all align with the details which have been provided by our client or their representative. We will also ensure the photo on an ID appears to match details of our client/their representative, such as their age.

We do not recommend you send these documents to us via email as it is not considered a secure form of transmission and data security is integral. If our client or their representative is unable to undertake the POI check in person, we will send you a secure web link to upload necessary documents.

A factsheet summarising the examples of documents to be used for verification, can be downloaded here.

Identifying Discrepancies

When we are undertaking POI verification, if we identify any discrepancies with information which has been provided or claimed by our clients or their representatives, we may:

• ask additional questions, or request additional documentation or evidence; or
• see if we can independently verify the information provided, where possible.

Unfortunately, if we are still unable to verify or we are not satisfied with the information provided to ensure your identity is correct, we may decline our engagement with you.

Upon declining our engagement, we may also consider notifying the TPB, the ATO, ASIC or other relevant authorities, if we are lawfully permitted to do so.

Clients without conventional identity documents

Some clients, such as some Aboriginal or Torres Strait Islanders, those who came as refugees or affected by a natural disaster, may not be able to provide conventional forms of ID. In these situations, we will welcome a flexible approach. The steps we undertake in these situations may be different to or less than the TPB’s minimum requirements. We will still maintain detailed records outlining our client’s situation and the steps we have taken with you to establish your identity.

Record Keeping

We are not required to keep copies or originals of ID we use to identify our clients or their representatives. However, we will maintain a record in our database with sufficient details as soon as POI has been conducted. These details will consist of: date of verification, the method used to verify you or your representatives, who conducted the POI check and notes stating documents sighted but no numbers (eg: Drivers Licence number).

These records will also include confirmation that the ID’s used were clear and legible, identifying you and your representative (if any) and there has been no apparent reason to question the ID’s provided.

We will maintain records for up to at least 5 years after our engagement with you and/or their representative ceases.

Failure to undertake POI

As a registered tax agent, if we fail to undertake appropriate POI steps to verify a client and/or their representative’s identity, the TPB may find we have breached the Code, cease to be fit or proper to be registered or breached the civil penalty provision in the Tax Agent Services Act 2009.

The result of this breach, they may impose a sanction, terminate our registration or apply to the Federal Court for a civil penalty upon SRJ Walker Wayland Pty Ltd.

We appreciate your assistance and cooperation as we start to undertake POI checks with you, our clients, and your representatives (if any).