The Australian Taxation Office (ATO) has implemented strict new director rules for 2022, with hundreds of thousands of people potentially facing hefty penalties for failing to comply. Any individual who has been appointed as the director of a company or considered an eligible officer was required to apply for a director ID with the ATO by Wednesday or risk a fine of up to $13,200.
The new rules, which came into effect this year, are designed to help the ATO keep better track of companies and their directors. All directors and eligible officers are required to apply for a director or eligible officer ID, and failure to do so by the deadline will result in a penalty for each person.
The ATO has warned that the penalty for not having a director or eligible officer ID is significant and could reach up to $13,200 per person. The new rules are part of a wider ATO effort to improve compliance and transparency in the corporate sector.
The new rules apply to all companies, including private and public companies, foreign companies, and companies that are registered on the Australian Business Register. In addition to the requirement to apply for a director or eligible officer ID, the ATO is also implementing other measures.
The ATO has taken a reasonable approach towards those directors who attempt to do the right thing by extending the original submission deadline for director ID applications from November 30 to December 14 for those directors appointed to their posts prior to November 2021.
Those appointed on or after November 1 had to apply within 28 days, while those appointed on or after April 5 had to file for the ID prior to their appointment to the role.
