Whether or not you need to undertake all the minimum proof of identity requirements contained in our Practice note will depend on a number of factors relating to your relationship and familiarity with the client. In some cases, it may not be practical or necessary for you to undertake all proof of identity steps for clients whose identity you consider to be well-established. For guidance on how to determine if it is necessary to confirm the identity of a well-established client, please refer to paragraphs 18-21 of our Practice note.

There are a number of documents you could use to verify an international student. Some examples include a foreign passport, an overseas driver licence, international travel documents issued by a foreign government or the United Nations, a national identity card issued by a foreign government or the United Nations or an ImmiCard provided by the Department of Home Affairs. Our website guidance provides a comprehensive list of identity documents.

You can use a Document Verification Service (DVS) to compare a client’s details on government issued identity documents against details held by a DVS provider.

To use this method, you will need to have an arrangement with an appropriate Gateway Service Provider.

No, we do not recommend that you do as it increases your risk of being the target of fraudulent activity. We instead require you to keep a file note or record about the checks that you have undertaken. Check our Practice note for further information.

While we cannot provide advice or endorsement of particular service providers, you are permitted to use Document Verification Service (DVS) providers to meet the TPB’s minimum requirements, as this is an approved ATO method. For more information on using a DVS to meet your proof of identity (POI) obligations, visit the ATO’s website.

Client-to-agent linking is not an approved method for meeting your POI obligations. 

Yes, you need to undertake POI before providing tax agent services (including BAS services) to all clients.

If you are engaging with a client and/or their individual representative remotely using videoconferencing, our requirements remain the same as for those who engage with clients face-to-face. If you sight original or certified identification documents through videoconferencing or with the use of a webcam, we require you to make a note of this in your contemporaneous record of the POI checks undertaken. If you engage a client and/or their individual representative through non-visual electronic communication (for example, using telephone or email only) and are therefore unable to verify and compare the client’s identity with the certified copies of identification documents, you should use the ATO’s methods for verifying the client’s and/or representative’s identity. For further information, refer to the ATO website.

Ultimately, you should be reasonably satisfied that the client's identity is who they say they are. This will vary depending on the circumstances. In some instances, you may be required to take additional steps to verify the client's identity or decline the engagement all together. Further information can be found in our Practice note.

It may be sufficient if you receive written confirmation from the tax agent that they have undertaken POI that meets our requirements. Check out paragraph 33 of our Practice note to see if your circumstances meet the requirements.

We have prepared a factsheet that you can provide to clients, to assist you in explaining your obligations (and theirs).

Yes, you can view the ABN via the ABN lookup function on the ABR.

We recommend you seek advice from an IT expert about secure methods of transferring ID documents.

We don’t recommend the use of email unless the ID is in an encrypted or password protected file or format.

We would not recommend it. We provide some guidance on this topic in paragraph 28 of our Practice note.

Our POI requirements, and the corresponding ATO approved methods for client verification apply on an ongoing basis, and not only to initial interactions. However, the requirements may change over the years if a new client becomes ‘well established’ given your continuing engagement with them. See paragraphs 18-21 of our Practice note.

If you use a document verification service, you need to record that this is the manner in which you have undertaken POI.

We recommend issuing or updating your engagement letter at least annually. You should also update them whenever there is a change in the engagement between you and your client, for example a change in fee structure.

We don’t provide templates as each tax practitioner and client engagement is different. However our Practice note has more information on what to include in an engagement letter. In addition, many recognised professional associations can assist their members with templates as a starting point.

Yes, they can incorporate the authority to act.

You should reconfirm or review the arrangements with clients regularly (preferably annually) for recurring or ongoing engagements. You may need to provide a new letter of engagement in certain situations, including when there are changes in your client's circumstances, any relevant laws/regulations, and the terms or scope of the engagement. Your engagement letter can also be used to gain consent from the client to disclose their information to third parties, for example, software providers that you use in connection with the services that you provide. As such, it is important that you review your engagement letters frequently, regardless of how familiar you are with the client. 

Yes, we recommend including client obligations in the letter of engagement.

Engagement letters may incorporate a number of different documents, for examples terms of services and fee schedules. It is important that the information provided to your client, regardless of form, is clear and easy to understand. 

We recommend you use engagement letters for all engagements with clients, including individuals. However, the complexity and form of this engagement letter may vary depending on the complexity of the service being offered to the client. Even for simple dealings an engagement letter will ensure you and your client have clear expectations and that there is no misunderstanding of the services being provided.

Information about fees in an engagement letter may be the basis on which fees are to be calculated and charged, the frequency of billings and the time frame for payment. As disputes about fees often arise, the letter of engagement can limit the capacity for misunderstandings and provide the client with clear expectations about how much the tax agent services are likely to cost (even if that amount is yet to be determined).

While engagement letters are not a specific requirement of the Code of Professional Conduct (Code) in the TASA, we are of the view that the provision of engagement letters is an important and effective mechanism to assist you in ensuring you comply with the requirements of the Code. It is for this reason that, when considering if a tax practitioner has breached the Code, we take into account the existence and content of an engagement letter between the tax practitioner and client/s (where relevant).