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Director identification numbers are set to come into play early next year, as the ATO commits to rolling out the new unified business registry service in 2021.
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ATO eyes early 2021 introduction of director ID regime
20 August 2020
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While legislation giving effect to the new Director Identification Number (DIN) regime passed earlier this year, the new Commonwealth Business Registry Service responsible for its implementation has yet to become operational.
In announcing its corporate plan for the year ahead, the ATO noted that it expects to establish the Commonwealth Business Registry Service by early 2021.
This new register will upgrade and consolidate 32 separate business registers, including the Australian Business Register (ABR), into a single system.
“The Modernising Business Registers program will deliver a modern, whole-of-government business register platform with high levels of reliability, accessibility and security, which will reduce the regulatory burden for business,” the ATO said in its corporate plan.
“We will also introduce director identification numbers to help address illegal phoenixing, and help protect honest businesses and individuals from directors involved in unlawful activity.”
The Director Identification Number regime
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Key details of the regime, including what director details will need to be provided, have yet to be publicly released.
However, the legal framework has established that the DIN will require all existing and new directors to confirm their identity to a unique identifier that will be kept permanently, even if they cease to be a director.
New directors will have to apply for a DIN before they are appointed as a director, unless the period is extended by the regulations or unless they are provided an exemption or extension by the registrar.
Those appointed as a director within the first 12 months of the new regime’s operation will be granted an additional 28 days to apply for a DIN.
A transitional period for existing directors will be specified by a legislative instrument made by the minister.
There will be civil and criminal penalties for directors that fail to apply for a DIN within the applicable time frame, and for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple DINs.
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