ATO confirms director ID regime to be introduced in early 2021
The ATO plans to roll out a unified business registry service in early 2021, giving way for the introduction of director identification numbers to help address illegal phoenixing.
The ATO has published its corporate plan for 2020-21, setting out eight strategic initiatives that it will prioritise over the next year.
Among them is the establishment of the Commonwealth Business Registry Service by early 2021, which will consolidate 32 separate business registers 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’s corporate plan reads.
“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.”
Legislation giving effect to the new director identification number (DIN) regime passed earlier this year, but has yet to become operational.
Under the new legislation, all existing and new directors will need to apply for a unique identification number that will be kept permanently, even if they cease to be a director.
The new system is expected to combat phoenix activity, as well reduce time and cost for administrators and liquidators during the insolvency process by providing a more streamlined tracking of directors and their corporate history.
“The implementation of director identification numbers will foster trust and confidence by creating a fairer business environment,” the ATO added in its corporate plan.