ATO’S $13,200 FINE FACING COMPANY DIRECTORS

The deadline to have a Director ID is 30th November 2022. Please apply for it URGENTLY to avoid the hefty penalties.

It is free to apply and obtain a Director ID. The quickest way to lodge an application is online using the myGovID app. See and follow the link: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number Remember that the website tend to crash so please do not leave it until the last minute. I have experienced it myself when applying.

A director will need to provide their tax file number, residential address as held by the Australian Taxation Office (ATO), and two documents (from a set list) to verify their identity. Directors can also apply by phone or using a paper form, if they are unable to get a myGovID app.

It is not possible to apply for a Director ID on behalf of someone else.

Further information on applying for a Director ID can be found at: https://www.abrs.gov.au/director-identification-number

The Director ID aims to help prevent the use of fictitious director identities, help regulators trace directors’ relationships with companies over time, and better identify director involvement in unlawful activity such as illegal phoenix activity, such as winding up or liquidating companies without paying creditors or employees to start new ones.

Directors who fail to apply for a Director ID within the relevant timeframes above can face criminal or civil penalties of 5,000 penalty units—currently standing at $1.11 million. Directors of Aboriginal and Torres Strait Islander corporations can face penalties of up to $200,000.

Once you receive your Director ID, please let me know so that I can also record it in my records. Thank you.