Practice Statement Law Administration

PS LA 2005/20

SUBJECT:	Signature requirements for approved virtual forms, which are forms which are to be lodged electronically or given by telephone
PURPOSE:	To explain: • the signature requirements and the process for approving electronic and telephone signatures in approved virtual forms, and • basic administrative support arrangements to be followed once a signature is approved.

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FOI status: may be released

STATEMENT

1. This practice statement sets out:

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the signature requirements for making declarations in approved virtual forms which are lodged electronically with the Commissioner or given to the Commissioner by telephone, and

•

the process which ATO staff must follow when approving an electronic signature or a telephone signature as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997).

2. The signature requirements for forms that are sent to the ATO by facsimile transmission are not dealt with by this practice statement because they are not considered to be transmitted to the Commissioner in an electronic format approved by the Commissioner.

3. Giving documents by facsimile transmission is considered by the Commissioner to be a way of giving the form in paper form for the purposes of subsections 388-75(1) and 388-75(2) of Schedule 1 to the Taxation Administration Act 1953 (TAA).

4. The signature requirements for forms that are sent to the ATO as e-mail attachments are not dealt with by this practice statement because they are not considered to be transmitted to the Commissioner in an electronic format approved by the Commissioner.

Electronic and telephone lodgment of 'approved forms' - declaration and signature requirements

5. The meaning of the term approved form as used in this practice statement is explained in Law Administration Practice Statement PS LA 2005/19 Approved forms (PS LA 2005/19). Forms that are lodged electronically or given by telephone are referred to as virtual forms in PS LA 2005/19.

6. An approved form that is lodged with or given to the Commissioner must contain a declaration from the entity lodging or giving the form that any information in the form is true and correct: sections 388-60 and 388-65 of Schedule 1 to the TAA.

7. Where the form is lodged electronically, any required signature must be an electronic signature, under subsection 388-75(3) of Schedule 1 to the TAA.

8. Similarly, where the form is given by telephone, any required signature must be a telephone signature, under subsection 388-75(4) of Schedule 1 to the TAA.

9. Only the Commissioner, a Second Commissioner or an SES officer holding the appropriate delegation from the Commissioner (the approving officers) may approve the electronic or telephone signature requirements for an approved form. The approving officer must approve a signature that:

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is adequate to authenticate the identity of the entity signing the declaration in a form, and

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minimises the risk that the declarations made can be repudiated or denied by the entity signing the declaration in a form.

10. The officer approving the form must ensure, if the form may be given electronically, an electronic signature is approved so that it applies to any declaration in the form, and if the form may be given by telephone, a telephone signature is approved so that it applies to any declaration in the form.

11. The approving officer for an electronic signature should ensure that the approved form includes the declaration details for every signed declaration required by the form.

12. Similar requirements must be followed when approving a telephone signature. The ATO's interactive voice recognition (IVR) system will outline the appropriate declaration to which the preparer will respond either orally or by use of the telephone keypad.

13. 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 Attachments A and B for electronic and telephone signatures respectively.

14. Where an instrument of approval is created for an electronic signature for a document that can be lodged electronically the instrument of approval must be held as ancillary material to the instruments of approval for the related approved forms in accordance with paragraph 20 of PS LA 2005/19.

15. Where an instrument of approval is created for a telephone signature for a document that can be lodged by telephone the instrument of approval must be held as ancillary material to the instruments of approval for the related approved forms in accordance with paragraph 21 of PS LA 2005/19.

16. A register for instruments of approval for electronic signatures is not required because these form part of the ancillary material to the instruments of approval for the related approved forms. As stated in paragraph 24 of PS LA 2005/19, these arrangements are not part of the approval process for electronic and telephone signatures.

17. Electronic and telephone signatures will be approved on the basis of business practicalities and system capabilities such as developments in lodgment technology.

18. A number of Acts administered by the Commissioner have electronic signature requirements that are not covered by the signature provisions in section 388-75 of Schedule 1 to the TAA or the definition of electronic signature in subsection 995-1(1) of the ITAA 1997. In approving electronic signatures for provisions in those Acts, approving officers must follow the process outlined in this practice statement.

19. The tables in Attachment C list some of the different electronic and telephone signatures which have previously been approved for use with these forms of transmission.

EXPLANATION

Signed declarations in approved forms

20. Where a form is required to be given to the Commissioner in the approved form, taxation law requires a signed declaration, including that any information in the form is true and correct (sections 388-60 and 388-65 and 388-75 of Schedule 1 to the TAA). A statement that is false or misleading can result in an administrative penalty under subsection 284-75(1) of Schedule 1 to the TAA, or constitute an offence under section 8K or section 8N of the TAA.

21. Taxation forms are generally required to be given in the approved form. Section 388-50 of Schedule 1 to the TAA sets out the requirements for approved forms. PS LA 2005/19 explains the procedures for approval of approved forms.

22. If an agent is providing information in an approved form on behalf of another entity, section 388-70 of Schedule 1 to the TAA requires the agent to make a declaration to the Commissioner about the form being given. The declaration details must state that:

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the form has been prepared in accordance with the information supplied by the other entity;

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the agent has received a declaration from the other entity stating that the information provided to the agent is true and correct, and

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the agent is authorised to give the form to the Commissioner.

Electronic and telephone signatures on approved forms

23. Under subsection 388-75(3) of Schedule 1 to the TAA, signed declarations in approved forms that are given electronically must be signed with the entity's electronic signature. The required signed declaration may be different or additional to a declaration under section 388-60 or 388-70.

24. Similarly, under subsection 388-75(4) of Schedule 1 to the TAA approved forms that are given by telephone must be signed with the entity's telephone signature.

25. The term 'electronic signature' of an entity is defined in subsection 995-1(1) of the ITAA 1997 as 'a unique identification of the entity in electronic form that is approved by the Commissioner'. This gives the Commissioner a broad discretion to determine the appropriate signature to be used on forms that are transmitted electronically to the ATO. An entity may be required by the ATO to have more than one electronic signature.

26. 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 (ECI) system. Others can be as simple as a personal identification number (PIN). For forms lodged by a registered agent using the electronic lodgment service (ELS) the electronic signature is a combination of the registered agent's registration number and a unique ELS approved number.

27. The term 'telephone signature' of an entity is also defined in the same broad way in subsection 995-1(1) of the ITAA 1997 as 'a unique identification of the entity that can be given by telephone and that is approved by the Commissioner'.

Approving electronic and telephone signatures

28. The authority to approve an electronic or telephone signature rests with the Commissioner, a Second Commissioner or SES officer holding the appropriate delegation or authorisation from the Commissioner (see Taxation Authorisations Guidelines).

29. Whenever a form may be lodged electronically there must be an applicable electronic signature for any signed declarations required in it. Whenever a form may be given by telephone, there must be an applicable telephone signature for any signed declarations required in it. The approved form may not be approved unless the approval of any required electronic signature and telephone signature has been verified (for one that already applies) or obtained (if none otherwise applies).

30. In each instance the officer approving the signature requirements must be satisfied that the identity of the entity giving the approved form can be authenticated, and that statements made by that entity cannot be repudiated. This ensures the integrity of the data and prevents an entity who has given an approved form from denying it was theirs. An electronic signature should be linked to the signatory and to no other entity, and within the control of the signatory and no other entity.

ATTACHMENT A

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 hereby approve the following form of electronic signature for the following purposes:

Signed this .....................................day of ......................................20

Name: .........................................................................................

Position Title: ........................................................................................

Position Number: ........................................................................................

Signature:

Delegate of the Commissioner of Taxation.

ATTACHMENT B

INSTRUMENT OF APPROVAL OF 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 hereby approve the following form of telephone signature for the following purposes:

Signed this .....................................day of ..............................................20

Name: ..............................................................................................

Position Title: ..............................................................................................

Position Number: ........................................................................................

Signature:

Delegate of the Commissioner of Taxation.

ATTACHMENT C

Table A - Forms of electronic signatures

Table B - Forms of telephone signatures

Amendment history

Date of Issue: 11 November 2005

Date of Effect: 14 November 2005

File 2004/11055

Related Rulings/Determinations:
TR 2005/9

Related Practice Statements:
PS LA 2005/19

Other References:
List of approved forms
Taxation Authorisations Guidelines(link available internally only)

Subject References:
approved form
declaration
electronic signature
telephone signature

Legislative References:
ITAA 1997 995-1(1)
TAA 1953 8K
TAA 1953 8N
TAA 1953 Sch 1 284-75(1)
TAA 1953 Sch 1 388-50
TAA 1953 Sch 1 388-60
TAA 1953 Sch 1 388-65
TAA 1953 Sch 1 388-70
TAA 1953 Sch 1 388-75(2)
TAA 1953 Sch 1 388-75(3)
TAA 1953 Sch 1 388-75(4)