The Government has introduced new legislation that makes all Directors more traceable, and helps to assist the regulators when investigating any UNLAWFUL activity, including, but not limited to, ILLEGAL PHEONIX Activity.
What is Phoenix Activity ?
"The evasion of tax and other liabilities, such as employee entitlements, through deliberate, systematic and sometimes cyclic liquidation of related corporate trading entities."
What is the new Directors Identification Number? (DIN)
This will be an individual number that "sticks with" every director of a company, no matter how many companies he/she may have. It is unique and unlike the ACN (which attaches to the company), the DIN attaches to the Director. The DIN keeps forever, even when you stop being a company director, change your name, or move interstate or overseas. It will confirm the director's identity and will in the future show which companies the director is linked to.
What does this mean to you, as a director?
If you are a director of a company, or intend to be a director of a company, or were a director of a company as at 4th April 2021 you will need to apply for a Director Identification number.
But before you jump in, there are guidelines as to how you can apply and who can apply.
- The Government webform must be used
- myGovID must be used to initiate the application (so you better get your
myGovID up and ready)
- The Application must be completed in one sitting (at this stage the form does not allow you to save and resume later) (I know, Crazy hey!)
- The individual will be issued the DIN either at the time or by subsequent communication. You should make note of this very important number and then give it to your tax adviser or accountant.
QUICK TIP: Your myGovID is different to your myGov account.
myGovID is an app. You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
Step 1 – Set-up a myGovID
You will need a myGovID with a standard or strong identity strength using two Australian identity documents, such as:
‒ Driver’s licence or learner’s permit
‒ Passport
‒ Birth certificate
‒ Visa (using foreign passport providing still in Australia)
‒ Citizenship certificate
‒ ImmiCard
‒ Medicare card
If you already have a myGovID go to Step 2.
Step 2 – Gather the documents required for identification
You will need to have some information the ATO knows about you when you apply for your DIN.
You will need to complete a ‘proof of ATO record ownership’ (PORO) by providing:
‒ Your tax file number (TFN)
‒ Your residential address as held by the ATO
‒ Information from two documents to verify your identity
Examples of the documents you can use to verify your identity include:
‒ Bank account details
‒ An ATO notice of assessment
‒ Super account details
‒ A dividend statement
‒ A Centrelink payment summary
‒ PAYG payment summary
Step 3 – Complete your application
Once you have a myGovID with a standard or strong identity strength, and information to verify your identity, you can log in and apply for your DIN:
Your myGovID details & ATO details will be prefilled and all you need to do is enter your place of birth, postal address, mobile number, any former names and complete the declaration.
The application process should take less than 5 minutes and once complete, you will instantly receive your DIN.
How do I apply for a DIN if I cannot get a myGovID?
If you can’t get a myGovID with a standard or strong identity strength, you can apply by phone or with a paper form.
You can apply by phone if you have:
‒ An Australian TFN
‒ The information needed to verify your identity (as listed above)
The phone number is 13 62 50 and is available between 8:00am and 6:00pm Monday to Friday for directors in Australia. For directors calling from overseas, the number is +61 2 6216 3440.
If you can’t apply online or over the phone, you can apply using a downloadable form ‘Application for a director identification number’ (NAT 75329). This is a slower process and you will also need to provide certified copies of your documents to verify your identity.
Once you have applied and received your DIN, you can login to ABRS here to check your details.
The most unfortunate part of this whole process is that the Government has DISABLED any of us advisers to do this application on your behalf. (Although numerous industry bodies are trying to get this through.) We appreciate that you may not fully understand how and what you need to do. We know that this is going to be frustrating for you. We expect that many will want us to walk the walk with them.
That is okay, as long as we do it together! Unfortunately some things in life, we have to do ourselves. (but with a little added support)
To walk the walk with you, we are offering one on one meetings to do this together. Please call me directly 0409 715577 or contact us to schedule a suitable time.
This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred. This is general advice only. Source : ato.gov.au