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ATO Loophole in Client Agent Linking leaves bookkeepers vulnerable.

The November 13 rollout of the new Client Agent Linking (CAL) process comes with a glitch in the Online Services for Agents (OSFA) system, leading to a severance of the BAS Agent from the client, of which the consequences are now more dire.

This issue involves a client’s tax agent/accountant inadvertently assuming the Activity Statement role and de-linking the BAS Agent's OSFA connection. While the ATO is aware of the problem, no fix has yet been found other than to step up OSFA warnings to tax agent before they de-link

Director of the Australian Bookkeepers Network (ABN), Peter Thorp, likened the problem to "untangling a knot", specifying that the CAL process has introduced additional complexity and frustration for bookkeepers and their clients.

Historically, a BAS Agent could easily reconnect themselves, but with the new Client Agent Linking process, this is no longer an option. The new solution now requires clients to undergo the full CAL process to re-nominate their BAS Agent.

Peter acknowledges the frustration: "We are worried about the headache this system weakness is going to bring and that it hasn’t been fixed,” said Peter. “We want people to be mindful that this change is happening, and that it will likely bring additional stress.

“Typically this happens when an accountant or their administrative staff just quickly ticks all the boxes when onboarding without too much reading and don’t realise they are also removing the BAS Agent,” said Peter.

Previously the BAS Agent simply re-added the client. “The BAS Agent then has to go back to the client and ask them to work through the ATO’s new linking process. This will prove to be a significant irritant to the client  and risks even losing the BAS Agent their client," said Peter.

Until clients successfully re-nominate their BAS Agent, essential processes such as STP payroll reporting, Activity Statement lodgement and SBSGCH lodgement. Lodgements remain hindered until the 6 stage linking process is completed.

In a new-CAL world, this loophole not only exposes bookkeepers to vulnerability but also highlights the pressing need for a more streamlined solutions to ensure a seamless tax-compliance experience.

"Although we are all frustrated with this process, the best way forward is to patiently work through it and see what improvements can be made," said Peter.

Category
ABN
Published
21 Nov 2023
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