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ATO targets identity theft and tax fraud with new guidelines
The guidance surrounding cyber crime has been developed by the ATO and the Tax Practitioners Board.
ATO targets identity theft and tax fraud with new guidelines
The guidance surrounding cyber crime has been developed by the ATO and the Tax Practitioners Board.
New guidelines on identity verification have been developed by the Australian Taxation Office (ATO) and the Tax Practitioners Board (TPB) in an effort to combat cyber crime.
The ATO and TPB warned that victims of cyber crime could suffer serious financial consequences regardless of whether they are an individual, small business or large company.
“We are increasingly concerned that criminals are committing tax refund fraud by stealing data and impersonating taxpayers,” said ATO Deputy Commissioner William Day.
“Protection of privacy and information is important for all Australians. Tax practitioners have a trusted role and these new guidelines will further help them to meet their obligations to secure the personal and financial details of their clients.”
The new proof of identity guidance from the TPB aims to help tax practitioners verify the identity of their clients and therefore reduce the risk of identity theft and tax fraud.
In addition, the complementary strengthening client verification guidelines released by the ATO are targeted at tax practitioners using the online services for agents system or practitioner lodgment services through software.
“In a period where cybercrime is becoming increasingly prevalent, maintaining best practices for client verification is vital,” said TPB chair Ian Klug.
“The TPB guidelines outline appropriate requirements for verification – this includes defining the documents to be sighted, maintaining records and recommendations about achieving remote verification of clients.”
The ATO and TPB said they had consulted extensively with industry and tax practitioners during the development of the guidelines, which are set to become the minimum standards in the future.
Mr Klug added that proof of identity systems had already been implemented by many tax practices as part of their risk management and governance processes.
“I encourage other tax advisers to review and update their systems as soon as possible,” he said.
“After an appropriate time for education, consultation, and transition, we will formalise these guidelines and their date of effect.”
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