Almost a million Australians could face a $13,200 fine from the Australian Taxation Office (ATO) for forgetting to apply for a Business ID by November 30.
The ATO has been urging businesses to apply for a Business Identification Number (BIN).
The ATO has warned that businesses that do not apply for a BIN by November 30 will be fined $13,200.
All estimated 2.5 million Australian company directors need the unique 15-digit identifier by November 30 to avoid the penalty. Around one million directors have not applied for their director ID, according to the ATO.
Australian business directors have just days to apply for a Business ID through the ATO Australian Business Registry Services (ABRS).
To apply for a BID, business directors will need to have a myGov account linked to the ATO.
Once you have a myGov account, you can apply for BID through the ATO online services.
The MyGov account will allow the system to flag any unusual occurrences, such as a possible phoenix operation, and the unique identifier will make sure companies are being run by real people.
A phoenixing operation is a company’s process of liquidation and restarting under a different name to eliminate debt.
According to a 2018 report commissioned by the Australian Taxation Office, this illegal practice costs the economy between $2.85 billion and $5.13 billion annually.
The ABRS’s Karen Foat has urged whoever has not yet applied for the ID should do by November 30 to avoid hefty fines.
“We’re pleased that many directors are getting their director ID and encourage others to do the same with the fast-approaching November 30 deadline,” she said.
“You can be a director without wearing a suit or working in an office. If you run a small business, self-managed super fund, a not-for-profit, or even a large sporting club, you may be a director, which means you’ll need a director ID.”
“The unique 15-digit ID helps the government to find notorious companies and take strict action.”
“This is really illegal behaviour, and it’s called “phoenixing.” It’s where business owners illegally shut down their company and transfer assets into a new company to avoid paying what they owe to employees and suppliers. “
“You’re helping to protect the community by applying for a director ID.”
