This Practice Statement sets out the: • signature requirements for making declarations in approved virtual forms which are lodged electronically or given by phone • process which we must follow when approving an 'electronic signature' or a 'telephone signature'. [1]
All further legislative references in this Practice Statement are to Schedule 1 to the Taxation Administration Act 1953, unless otherwise indicated.
Approved forms meet the requirements contained in section 388-50. [2]
Virtual forms are lodged electronically or given by phone. [3]
An approved form that is lodged with or given to us is required to contain a signed declaration from the entity lodging or giving the form. [4]
Where the form is lodged electronically, any required signature must be an electronic signature [5] , defined as 'a unique identification of the entity in electronic form that is approved by the Commissioner'. [6] This gives us a broad discretion to determine the appropriate signature to be used on forms that are transmitted to us electronically. An entity may be required to have more than one electronic signature.
Similarly, where the form is given by phone, a telephone signature is required [7] , which is defined as 'a unique identification of the entity that can be given by telephone and that is approved by the Commissioner'. [8]
The following staff may approve the electronic or telephone signature requirements for an approved virtual form: • the Commissioner of Taxation • a Second Commissioner holding the appropriate delegation from the Commissioner, or • a Senior Executive Service (SES) officer holding the appropriate delegation from the Commissioner. [9]
The approving officer must approve a signature that: • is adequate to authenticate the identity of the entity signing the declaration in a form • minimises the risk that the declarations made can be repudiated or denied by the entity signing the declaration in a form • is linked to and in the control of the signatory and to no other entity.
The approving officer must ensure the electronic or telephone signature is approved so that it applies to any declaration in the form.
The approving officer for an electronic signature should ensure that the approved virtual form includes the declaration details for every signed declaration required by the form.
The form may not be approved unless the required electronic signature and telephone signature have been obtained and verified.
Approving officers must record in writing the electronic or telephone signature and their approval of the signature requirements. Standard forms of instruments of approval are at Appendixes 1 and 2 to this Practice Statement for electronic and telephone signatures respectively.
An instrument of approval (IOA) should be held as an appendix to the instruments of approval for the related approved virtual forms, where it contains either: • an electronic signature for a document that can be lodged electronically, or • a telephone signature for a document that can be lodged by phone.
A register for instruments of approval for electronic or telephone signatures is not required because these form part of the ancillary material to the instruments of approval for the related approved virtual forms. These arrangements are not part of the approval process for electronic and telephone signatures. [10]
Some electronic signatures are complex digital identifiers, such as the digital certificates issued to businesses that lodge business activity statements over the internet using the electronic commerce interface system. Others can be as simple as a personal identification number.
For lodgment via the practitioner lodgment service, a tax agent certificate is required, comprising the tax agents' declaration together with their electronic signature.
The tables in Appendix 3 to this Practice Statement list some examples of the different electronic and telephone signatures which have previously been approved for use.
A number of Acts administered by the Commissioner have electronic signature requirements that are not covered by the signature provisions [11] or the definition of electronic signature. [12] In approving electronic signatures for provisions in those Acts, approving officers must follow the process outlined in this Practice Statement.
For more information, refer to: • Approved Forms (link available internally only) – this contains an IOA guide and IOA template to assist you in writing an IOA and dealing with the relevant signature requirements • Australian Privacy Principles • Law Administration Practice Statement PS LA 2005/19 Approved forms • Frontline Operations Practice Note FOPN 2015/001 Approved Forms: What should staff do when a form is received that does not meet the signature and declaration requirements? (link available internally only) • Frontline Operations Practice Note FOPN 2016/002 Approved Forms: When there is substantial compliance? (link available internally only).
The signature requirements for forms that we receive by facsimile transmission are not dealt with by this Practice Statement because they are not considered to be transmitted in an electronic format approved by the Commissioner. Instead, giving documents by facsimile transmission is considered to be a way of giving the form in paper form for the purposes of subsections 388-75(1) and (2).
Appendix 1 – Example wording for an instrument of approval – electronic signature
The following example wording is for an instrument of approval with an electronic signature: APPENDIX [Insert letter] – Electronic signature INSTRUMENT OF APPROVAL OF ELECTRONIC SIGNATURE In accordance with subsection 388-75(3) of Schedule 1 to the Taxation Administration Act 1953 and the definition of 'electronic signature' in subsection 995-1(1) of the Income Tax Assessment Act 1997, I, [insert name of the delegate of the Commissioner], hereby approve the following form of electronic signature for the following purpose:
Appendix 2 – Example wording for an instrument of approval – telephone signature
The following example wording is for an instrument of approval with a telephone signature: APPENDIX [Insert letter] – Telephone signature INSTRUMENT OF APPROVAL FOR A TELEPHONE SIGNATURE In accordance with subsection 388-75(4) of Schedule 1 to the Taxation Administration Act 1953 and the definition of 'telephone signature' in subsection 995-1(1) of the Income Tax Assessment Act 1997, I, [insert name of the delegate of the Commissioner], hereby approve the following as forms of telephone signature for the following purposes:
Appendix 3 – Examples of electronic signatures
Table 1 and Table 2 of this Practice Statement outline a non-exhaustive list of electronic signature examples: Table 1: Examples of electronic signatures (non-exhaustive) Signature requirement Purpose Digital signature produced by the use of a machine credential, accessed via Relationship Authorisation Manager used to access government online services. To access a range of business to government services via and to electronically sign forms accepted under the Standard Business Reporting - enabled software, including the practitioner lodgment service. Digital signature produced by the use of the myID identity credential and the authorised relationship is verified through Relationship Authorisation Manager used to access government online services. To log in to a range of ATO online services and for signing an approved form lodged or given to the ATO via ATO online services, including Online services for business and Online services for agents. Digital signature produced by the use of the myID identity credential after the authorised relationship is verified through Relationship Authorisation Manager used to access government online services. To log in to a range of business to government websites and to electronically sign forms when lodged via certain ATO online services. Digital signature produced by the use of identity credentials provided by the myGov service. For signing an electronic approved form that is lodged or given to the ATO via ATO online services. Digital signature produced by the use of the myID identity credential provided by the myID app. For signing an approved form lodged or given to the ATO via ATO online services by an individual. Table 2: Examples of telephone signatures (non-exhaustive) Signature requirement Purpose Identification of the person in accordance with 'Principles for proof of identity and proof of record ownership' procedures for inbound calls prepared under Chief Executive Instruction Identity management. To allow the person to lodge the form via the phone. Identification of the person in accordance with 'Principles for proof of identity and proof of record ownership' procedures for outbound calls prepared under Chief Executive Instruction Identity management. To undertake contact with the person where the paper form or electronic form is incomplete, incorrect or requires confirmation.