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Acceptance for value to settle tax liability
Hi everyone,
Hope you’re well.
I used an acceptance for value under my birth certificate identity to pay for a tax liability under my corporate entity.
Briefly, what I did was to use the template provided by Mark whereby I acknowledge the sum payable with a handwritten note stating sum certain of $1 to settle the sum payable, and affixed a 5c postage stamp as stamp duty. I then wrote over the payment slip with the full sum payable but then attached a $1.20 postage stamp with a paper clip with the detached payment slip to act as a valid cheque made to the ATO. I also included a certified copy of my driver’s license (I was born overseas) to confirm my public identity that I may draw down funds from The Treasury when settling the sum payable.
I posted that two weeks ago by registered mail and confirmed from Australian Post that the ATO has received my mail.
Today I will find out if the ATO has accepted it because this liability is paid by monthly instalments deducted from my company bank account on the 17th of each month. However, since the 17th fell on a Saturday, I am expecting that the direct debit should come some time today.
It’s almost 2pm and I haven’t seen any funds deducted. Not sure though as we have to wait till midnight to be sure.
But from those who tried this method, how did you know that your payment went through? Did they actually update the statement of account to show you have paid off your outstanding debt or do they stay silent because they know you worked out the game and they want to keep you guessing?
Would love to hear from you guys so I know what to expect.
God bless,
Brian
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30 Replies
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Thanks for these documents. I want to also hear from people who experienced this so they can provide their testimony as well.
I think the Q&A makes a useful guide to help people prepare. But I’ve walked through the door so to speak so I want to also hear who else has done the same.
God bless,
Brian
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The direct debit from ATO was processed tonight at 10pm.
I will check what my statement of account says when the ATO mails it to me. But I now can say that they have double charged me since I have done the correct procedure to settle my liabilities yet they have not cancelled the direct debit requests on my corporate bank account.
I will see how this all turns out. Will call them up in a few days’ time to cancel the instalment arrangement.
God bless,
Brian
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Isn’t it up to you to cancel any direct debits?
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Hi Morag,
I believe so. Thank you for the reminder. I thought about doing this before they debit out of my account this month.
I am cautious about this though since I don’t want my company to be put on default for cancelling the direct debit on the tax liability.
But since they have debited my account for another month, I have reduced the liability further assuming that they have refused to accept my A4V-money order.
I will give it a few more days before calling them up and cancelling the direct debit. Might see if they send me any letters updating my statement of account first.
This is my first attempt at settling something using the methods that Mark has suggested so being very careful.
God bless,
Brian
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Good on you, it takes courage and determination to do what you are doing 🙂
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Thanks… but what is meaningful is that I’ve done everything correctly. It’s a bit of a guessing game right now.
So far I haven’t received any correspondence from the ATO from my notice of second default on them seeking two fines for late lodgment of my business activity statements and presenting evidence that their putting corporate bodies under the Pay As You Earn scheme. I’ll send my notice of third default by the end of this week on that.
As for the A4V with money order, I handwritten my payment slip as a cheque with a random money order serial number. Not sure if that is valid. I don’t have a Centrelink number so I randomly created a bond surety number. Nonetheless I gave my tax file number and a certified passport copy in lieu of my birth certificate which is overseas.
Haven’t received any response from them or a return of my payment slips. Though I didn’t say return within 72 hours if they reject.
Next round if they send me a statement of accounts without any recognition of my money order payments I’ll do it again and state return within 72 hours if they reject it.
Let’s see how it all goes.
Anyone else went down similar path with the ATO? Please share your process here and specify what you did with each of your documents and what paper trail the ATO provided in response. That would be really valuable.
God bless,
Brian
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Just a suggestion, if you want more people to see your request at the end of the last comment you made, then put that request in a statement by itself and then people will quickly be able to read it on the community page and more people will see it.
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Did you include a default and liability clause in your notices? If you did and they default after your third notice then you can put the default clause into action. They will know that 72 hours is the standard time in which you can reject an offer if they haven’t rejected it they have accepted it.
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I just received my monthly tax statement of accounts from the ATO showing this time that they have accepted my monthly instalments that had gone through.
However, the statements of account now claim that I have overdue tax liability that are due immediately. I also noticed that this is a different deputy tax commissioner who sent me this notice.
I will send them back the statements of account with a certified copy that I had discharged my liabilities by way of a money order and also a letter stating that as they had not written back to me with my mailed money orders within 72 hours that legally they have accepted the payments.
God bless,
Brian
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Maybe put that in the form of a question to get them as second witness to the fact they have accepted it? eg Did you not accept my offer by keeping it in your possession for longer than 72 hours?
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Hi Morag,
Yes, I immediately got to work to draft up this letter, then went through their statements of account writing that I do not consent to their offer to contract with me as I had discharged the liabilities by way of money orders that were posted by registered mail.
They’re a sneaky bunch. Bringing in another deputy commissioner of taxation to try and create a new contract with me. Nice try.
God bless,
Brian
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Hi Brian here’s a couple of suggestions to make it a bit tighter but generally it is a great reply.
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Thank Morag!
My first question pertains to implying that Melinda’s lack of response after receiving my money orders would equate to the BOE Act stating that she has accepted my form of payment or claimed dishonour without informing me promptly.
Basically I have put them in a bind because them sending a statement of account is to claim dishonour on a legitimate payment or they have accepted payment but seek to contract me on a settled liability. I want them to establish that both of these place them in a position of dishonour. The third option is for them to be silent and therefore give me the position to claim they have assented.
God bless,
Brian
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Well is it an implication or a fact? [From the dictionary…Implication..what is implied or suggested rather than formal expression] Isn’t the Bill of Exchange Act the legislation they base all commerce on? Aren’t they rules that must be observed in commerce when they are held to account and asked the right questions? According to their own rules?
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Hi Morag,
The ATO just sent me an overdue notice on my company tax liability requiring me to pay by 20 July.
Just want to check regarding the money order that we use, the tax file number under our personal name is sufficient to draw down from the Treasury, right? If we gave the wrong Centrelink number, it won’t be rejected?
Can I be confident that had the money order not been accepted for whatever reason that the ATO would’ve sent me a letter claiming my payment is rejected? Not doing so meant that the money order is legitimate and they as the holder now have no recourse over me and therefore cannot require my company or I to make further payments?
Just want to double check this.
I’ll have to draft a response to the ATO overdue notice referring back to my money orders as having discharged the tax liability and Melinda’s lack of response means that it has been accepted (I’ll send a cited copy of the money orders in this response).
Thanks for your help. Need to check that I’m on the right track throughout this process.
God bless,
Brian
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It sounds right to me. Just to remind me did you do a three step process with a default and liability clause included along with an affidavit?
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Hi Morag,
I have sent my notice seeking further and better particulars to David Allen over this matter stating that there is a default and liability clause associated with the money orders. That was also in the submission I made to Melinda on my notice of default judgment.
So I have made it clear that Melinda received my money orders, I had not heard from her and therefore it is assumed that she had accepted the payment. Therefore subsequent attempts to contract are now new offers to contract.
That’s sufficient?
God bless,
Brian
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So I’ll persist with this till I make David Allen also in default and see who else they throw at me on this and I’ll continue to do the three notices estoppel strategy.
I’ll also add a clause warning them any attempts to draw from my bank accounts without my express consent equate to theft of private property which will mean they are personally liable for up to four times the amount they seek to seize.
God bless,
Brian
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Here’s what I am drafting up to send tomorrow in response to their overdue notice.
Please let me know if there’s anything to amend or that I need to provide to them.
God bless,
Brian
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Excellent Notice!!! Just one suggestion…..If you do not do this within the stipulated time, it will constitute a default on your end and I will send a final default notice following up on this matter.
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Thanks Morag.
I will amend that and print it out and mail it. All locked and loaded now.
God bless,
Brian
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Here’s my notice of final default to David Allen over my corporate tax liability matter.
Another step closer to the line.
God bless,
Brian
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Here’s a heading that Mark uses on a third Notice “Final Notice, Notice and Demand, Else Notice of Default Judgment”
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Thanks for that. Will keep that in mind. I recall that there was a template for that.
God bless,
Brian
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Hi again,
You kindly went through my notice of first default and amended it to remove the details regarding what I will do in sending my second and third default notices.
Upon my third default notice I’ll let them know my planned course of remedy for the situation and give them 5 working days to respond.
While 72 hours is the standard way of conducting business, I will give them a bit more time to heap more coals on them should they not respond, which I expect them to do just that from what they’ve done thus far.
I will draft my notice of final default and share it here for people to review and offer suggestions.
God bless,
Brian
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Yes just sent the second round after receiving a different instrument with the same amount owing so I printed not accepted on it sent it back with notice feather and better particulars and copies of money order, notice of payment, ID, mailing certificate-1, mailing certificate-2, seems that there are two Deputy Commissioners of Taxation David Allen and Melinda Smith so I noticed both of them,
<font face=”inherit”>Shall see what </font>happens in round three<font face=”inherit”> </font>
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With the copies of your money orders and the notice of payment and mailing certificates, did you get them sighted by a JP or did you just send the photocopies of these only?
Do we only need to get a JP to sight our documents for the purposes of submitting it to court as affidavits?
God bless,
Brian
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When you take an affidavit to a JP it is so they can witness your signature and take your affirmation that it is true and correct etc. Also if you have any copies as exhibits you can take the originals and get the JP to sign the copies as true and correct copies once he has sighted the originals. All of this can be filed in court as exhibits to a court affidavit if necessary. When you file in court you need to use their affidavit documents from their website.
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