Date posted: 21/06/2021

Submission on ATO’s proposed client verification guidelines

CA ANZ has lodged a submission on the ATO’s proposed client verification guidelines

Chartered Accountants Australia and New Zealand (CA ANZ) has lodged a submission on the ATO’s proposed client verification guidelines set out in the Consultation paper – Transition to strengthening client verification. CA ANZ understands the importance of undertaking due diligence when engaging new clients or suspect an existing client’s identity has been compromised in combatting identity theft and fraud. However, we caution against mandating a client verification process which is overly burdensome on practitioners where the risk of tax fraud could be more effectively addressed via other methods.

In the submission, CA ANZ outlined various concerns with mandating the proof of identity requirements for client verification including the blurring of the role of the ATO and the TPB, the potential duplication of the client verification requirements if Tranche 2 of the Anti-Money Laundering and Counter-Terrorism Financing rules are introduced and the increased compliance burden on tax and BAS agents.

Related reading

ATO Consultation paper –Transition to strengthening client verification

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