Phoenix activities under the spotlight with new director identification number regime
15 April 2021
As part of the Modernising Business Registers (MBR) program, the Government is consolidating the Australian Business Register (ABR) and 31 other ASIC registers to create a single digital registry system that will be maintained by the Australian Tax Office (ATO).
As part of the MBR program, each director of a company will be provided with a unique Director Identification Number (DIN) which the director will keep forever, even if they change companies.
The unique DIN is designed to improve transparency as it will help identify directors involved in companies that have engaged in phoenix activities. That is, companies that have been deliberately liquidated to avoid paying their taxes, creditors and employee entitlements.
Currently, the DIN system is being designed and tested for functionality. It is anticipated to be available from late 2022 meaning directors would have until 30 November 2022 to obtain a DIN.
It is hoped the new unified digital single register system will make it easier for businesses to meet their registration obligations and improve the efficiency of registry service transactions.