If you are a director, you should have by now heard about the ATO's requirement for all company directors to register for a Director ID Number (DIN).
If you haven't registered, then you best get cracking as the ATO are about to start chasing the 500,000 or so directors who have failed to obtain one.
For the benefit of our readers who have been blissfully unaware of the new DIN requirements, here's a quick recap.
The ATO, in conjunction with the Australian Business Registry Services (ABRS), launched a new system (DIN's) in late 2021.
The new system was designed to target illegal phoenixing activity, allowing authorities to track those directors who were doing the wrong thing.
So now, all directors, new and old, need to register for a unique code, which will be forever tied to their directorships, and hopefully reduce the impact of phoenix activity.
Although the majority of business leaders are not undertaking nefarious activities, the system is a catch all.
It is estimated that as many as 700,000 directors missed the November cut off and although the ATO extended an amnesty period, that has now passed, there is still a considerable number of directors still to sign up to the scheme.
Lack of public awareness, along with difficulties in the registration process, have been cited as reasons for the delay in registering.
Regardless of the reason, it is now time to register as the penalties for not registering for a DIN are quite significant.
If you need to register, but don't know where to begin, we recommend visiting to the ABRS website to view their video guide to the registration process.
