Newsletter
September 2018 Newsletter
New changes for Business Directors - 'A step in the right direction'
The government has now undergone a new direction regarding Business Directors, and it will provide a form of protection for small businesses. By introducing a DIN – Director Identification Number, there will be an increase in security for all businesses that are affected by Rogue Directors or “Dummy Directors”. This has come about due the increase in the amount of Phoenix Businesses in recent years.
An important aspect of this is that the DIN will require business owners to provide proper identification to be registered as a business owner, whereby previously you could be one by simply using your name, address, business name and DOB. This unique identifier will allow for the government and ATO to track all business owners with regards to their communications, actions and general interface with the business. In order to become a Director of a business, 100 points of identification will be required when registering for a DIN.
In just the past week it came to the government's attention that there were over 45 cases of phoenix companies scam, incorporating a Dummy Director to save the business owner.
With the new DIN will come harsher persecution methods for the business owners who attempt to undergo any type of scam.
Read the full article at Accountants Daily here: https://www.accountantsdaily.com.au/business/12088-incoming-changes-for-directors-a-step-in-the-right-direction