You could be one of the 800,000 directors who have not applied for an ID number by the November 30 deadline. Do you understand the importance of registering a director ID?
On November 21, the ATO reported a record 28,426 applications. However, without a last-minute rush, only another 230,000 directors would sign up, leaving 770,000 (31%) to complete the process. The significant increase in applicants indicates the success of their information campaign.
According to the ATO, the vast majority of directors applied online, with only 45,000, or about 3%, using the paper form. A paper application is expected to take up to 56 days to process.
The office emphasized that many people wrongly believe their registered tax agent can apply for a director ID on their behalf, but this is incorrect. They strictly require all company directors to apply personally to verify their identity, aiming to prevent false and fraudulent identities.
Directors with valid reasons for missing the deadline due to personal circumstances can seek an extension. However, failure to meet the November 30 deadline may lead to a maximum criminal penalty of $13,200 or a civil penalty of up to $1,100,000.
If you have not done your Director ID, please hurry up as the deadline would be on end of November 2022. It’s free to apply for a director ID, and you must do it yourself. While your tax agent can’t apply on your behalf, you can ask them to help you with the application. Enduregotax specializes in assisting small to medium-sized businesses to improve and save money in their accounting and tax areas. Please visit www.endego.com.au for more information.
