Latest Accounting News
Hot Issues
Sub-trusts ‘redundant’ under final Div 7A ruling
Tax Office homing in property deductions, SMSFs warned
ATO adds indebted sole traders to credit referrals
State and Federal Covid support --- Aug 2022
ATO casts net wide when it comes to taxable business income
Largest natural gas produces by country from 1970-2021
NALI ‘a special problem for SMSFs’
Tax time tips
Census 2021 Data
Single Touch Payroll: Phase 2 deferral reminder
Largest inflation rates by country in Oceania
Write a business plan
Be wary of trust disclaimers, ATO warns
Tax time guide offers path through 100A
Car allowance increase ‘welcome news’
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
ATO zeroes in on work expenses, crypto investments
Forget the Tim Tams in your WFH claim, say ‘fun police’
Inflation will force a third of businesses to raise prices
Year-end tax planning
World GDP Ranking (1960~2025)
100A ruling ‘turns tax avoidance logic on its head’
Company directors must register - all you need to know
Be alert for phoenix activity, businesses told
Equifax signs data agreement with ATO
E-invoicing will reduce emissions, says PwC
Largest cities in the world 1500 to 2100
Last chance to claim the loss carry-back
Changes to recovery loan scheme for small and medium enterprises
About the cash flow forecasting template
Articles archive
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 2 April - June 2007
Quarter 2 April - June 2006
ATO provides further clarity on DIN process

 

The ATO and the SMSF Association have clarified some of the areas of confusion with respect to the director identification number process and outlined some of the ATO’s longer-term plans.

 



 


In June last year, the government passed laws introducing the requirement for all directors of a company in Australia to have a director identification number (DIN).


There is currently a transitional period in place where all new directors have 28 days to apply for a DIN after being appointed as a director. From 5 April next year, however, all directors will need to apply for a DIN prior to being appointed as a director.


Existing directors who were appointed prior to 31 October this year will need to apply for a DIN before 30 November 2022.


In a video discussion with the ATO, SMSF Association technical manager Mary Simmons outlined that one of the areas of confusion, particularly as the requirements move out of the transitional phase, is whether new directors should establish the corporate trustee for the fund first or obtain their director ID.


Ms Simmons clarified that given that Australian Business Registry Services (ABRS) allows a person to get their director ID before being formally appointed as a director, “it makes sense that anyone who is considering setting up a new corporate trustee for an SMSF should get their director ID first and then proceed to setting up an SMSF”.


For existing SMSFs with a corporate trustee, ATO director SMSF regulatory branch Martin Frauenfelder explained that apart from the need to have a director ID number, there would be no change to the current process.


“You still need to inform the ATO of any new members and lodge the relevant ASIC documents. For now, ASIC online forms do not collect or use the director ID number,” said Mr Frauenfelder.


Ms Simmons said this means that for a director being appointed to an existing corporate trustee today, the individual will need to go and obtain a director ID through the ABRS, which they currently have 28 days from the date of appointment to do so, they will need to inform the ATO through a change of details form within 28 days, and there is also an obligation to inform ASIC that there’s a change of details, which must also be done within 28 days of being appointed.


“There’s a few pieces to that puzzle at the moment, and I think we’re all hoping that as more registers transition onto the new ABRS by 2024 that that process will be a little more streamlined,” said Ms Simmons.


Ms Simmons said the SMSF Association would like to see the process streamlined so that a person can simultaneously apply for a director ID and also an ABN for an SMSF with a corporate trustee.


Mr Frauenfelder outlined that the ATO has longer-term plans to transition ABNs to the ABRS.


“As with any new system, we’ll be looking for opportunities to streamline the process while ensuring appropriate safeguards are in place,” he said.


ASIC’s company register will be transferred to the ABRS in the future, he said, which the ATO expects will happen around September 2023.


“By this time, a director’s ID will have been linked to the companies they are a director of. The ABRS will communicate linking arrangements at an appropriate time,” he said.


Once the director IDs are incorporated into the ATO’s risk models for those looking to establish SMSFs, it will identify an individual who has a pattern of phoenix activity, said Mr Frauenfelder.


“However, until this is fully functional, we will continue to carry out our risk assessments using the current systems,” he said.


 


 


Miranda Brownlee
16 December 2021 
accountantsdaily.com.au


 




25th-January-2022