MISS THE DEADLINE FOR DIRECTOR IDENTIFICATION NUMBER REGISTRATION? IT MAY NOT BE TOO LATE!
All company directors are required to register for a Director Identification Number (DIN), and with the original deadline of 30 November now passed, many company directors are left exposed to compliance action by the ATO.
Just how many are you wondering? Current estimates are around 700,000…!
The IDs are being introduced to crack down on “dummy directors” and company Phoenixing; an occurrence that sees an entity declare bankruptcy, insolvency, or liquidation without paying creditors, before “rising from the ashes” as another entity entirely – which is estimated to cost the community up to $5 billion a year.
With so many registrations still outstanding, the commissioner of taxation Chris Jordan, who is also the registrar of the Australian Business Registry Services (ABRS), has confirmed that the ATO will adopt what he is calling a “pragmatic compliance approach” as long as these directors apply for their Director ID by the 14th of December.
“The ABRS will not apply compliance resources to determine whether individuals met their Director ID obligations by 30 November 2022 if they apply for a director ID by 14 December 2022”.Chris Jordan – Commissioner of Taxation
From December 2022, it will be illegal to operate as a company director without a unique identifier. Those who don’t apply to the Australian Business Register Services (ABRS) may face up to $13,200 AUD in fines for committing a criminal offence with potential civil penalties of up to $1.1 Million.
If you’re one of the 700,000 still yet to apply, you can find out more about registration deadlines and how to apply at the ATO’s website.