The Government has announced a package of reforms to combat phoenix activities, including the introduction of a Director Identification Number (DIN).
Phoenixing involves deliberately transferring assets from a failed or insolvent company to a new company, with the intention to avoid paying the original company’s creditors, tax and employee entitlements (that is, the new company illegally “rises from the ashes” of the indebted company).
The DIN would identify each director with a unique number, allowing regulators to map the relationships directors have with entities and other people.
If you’d like to learn more about how the introduction of a DIN will affect you, please contact Custom Accounting.
