As soon as you take on a new employee you are obliged to check their identity. This sounds logical but it is not always so simple. Employers who do not concretely ascertain someones identity risk a retrospective collection of taxes.
How do you see through identity fraud?
You deal with fraud by Keeping the law, regarding identity obligations, Calling in a good investigation bureau. Taking account of the privacy law According to the law relating to identity obligations an employer must establish the identity of the employee before employment is commenced. This must be done based on a valid and original proof of identity. The employer must retain a reliable copy of the proof of identity in their salary administration unless they have permission from the tax authorities or the institute for employers insurance to keep it elsewhere. Issue the employee an income tax statement and make sure that he or she completes and submits it. Check the data supplied and save the statement together with the copy of the proof of identity in your salary administration. So far so good with the rules concerning the establishing of the identity of the new employee.
What must you look out for?
Here are a number of important points for you attention:
- Does the photograph correspond with the person handing you the document?
- Do the year of birth, age, shape and colour of the eyes agree?
- Is the document still valid?
- Does the signature correspond? Beware of damaged signatures.
Further it is important that you are aware of the authentic characteristics of passports and identity cards. Vermeulen: "Identity documents have all kinds of technical print devices such as watermarks, optical variable colours, tiny letters, filaments and such like. Many of these characteristics are on the holder page of the documents, the page with the personal details. Make sure this page is intact and undamaged with no cuts or no glue round the photograph. If in doubt, after making a copy, take it to the police".
Although as an employer you have no obligation to carry out a thorough-going investigation, you must have done your best to check the authenticity. If you have not acted in accordance with the law on identity check obligations you run the risk of retrospective taxation. On the employee(s) concerned a tariff of 52% withholding tax will be applied.