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The Tax Office has clarified in a recent update that client-to-agent linking cannot be used as a method to verify a client’s identity.
ATO updates client verification guidance
13 February 2025
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7 minute read
The Tax Office has updated its guidance on the client verification process to dispel the myth that client-to-agent linking can replace client proof of identity processes.
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In a recent update, the ATO said the client-to-agent linking process does not override a tax agent’s obligations to undertake client proof of identity.
“It only provides us with verification that someone has the authority to act on behalf of an entity within Online services for business,” it said.
“It does not verify the identity of the person that has engaged your services as a tax or BAS agent.”
The Tax Office said that practitioners should review the ATO’s client verification guidance before providing tax agent and BAS services to new and established clients in conjunction with the Tax Practitioner Board’s Practice Note TPB(PN) 5/2022 Proof of identity requirements for client verification.
The ATO previously outlined in its client verification guidance that to complete client verification, practitioners need to consider the interaction setting and method required in conjunction with the minimum requirements.
When undertaking client verification, the ATO advised practitioners to avoid asking for multiple client details from the same source or information that could be obtained from social media or the public domain.
“Don't confirm or deny responses to client verification questions,” the ATO added.
“Instead, complete a series of questions and provide a final response at the end such as ‘I am unable to verify your information at this stage’.”
It also warned practitioners not to divulge to the client any private information during the client verification process including pre-fill information.
“Strong client verification helps to protect tax practitioners, their clients, and Australia’s tax and superannuation systems from misuse and abuse due to identity theft and related issues,” the ATO said.
“With an ever-increasing reliance on technology and remote work practices, the risks presented by this continue to rise.”
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