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ATO tax liability letters
Hi everyone,
As you’re aware, since last June I’ve used the BOE Act and sent my annotated Statement of Account for my company taxes and the postage stamps as acceptance for value method to discharge my tax liabilities.
Each month, the ATO would send me the monthly statements showing the balance continues to accrue for interest. I sent letters back to put the Deputy Tax Commissioner on default already.
With each quarter, I sent in my BAS and then discharge the additional payments using the A4V method with postage stamps.
For the 2024 March BAS, I used a bank cheque of $100 to discharge my quarterly liability of over $2,000 which I had accepted for value for a sum certain of $100. I wrote an accompanying letter with my liability conditions that the $100 cheque discharges the quarterly liability if they bank it. I sent it by express post and saw that in my Statement of Account that the ATO had banked my cheque and reduced my liability by $100 when the ATO received it. But after the weekend, it decided to dishonour my cheque. I never received any correspondence explaining their reason for dishonouring a cheque when the account had a sufficient balance.
Since February, I’d receive maybe a notice warning me to pay my tax liability every two months. I just received one yesterday saying the ATO would take stronger action to recover the tax debt. Again, I responded with a letter immediately reminding them that they are on default judgment for ignoring, refusing and dishonouring my payments.
Never have I received any correspondence besides the templated sends from the ATO. No one ever wrote to explain why my claims are invalid or illegal. But I have diligently responded to them and kept a paper trail.
Anyone gone this far with dealing with company tax liability? Would love to hear your story.
God bless,
Brian
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9 Replies
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So they did not send instrument of payment back to you
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as not excepted
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They kept in their possession all my mail. So the postage stamps and the cheques they dishonoured.
That said, the business tax liability is rising to almost $70k. It is accruing interest in their books which is a little concerning.
Anyone went down this path like me and dealt successfully to having the ATO reduce your liability without making cash payment that they accept?
God bless,
Brian
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The most important thing to remember is that the ATO (and legislation) cannot supersede a private agreement so if you have established an agreement then not even the courts can override that. From this document https://ia800204.us.archive.org/35/items/cu31924084259872/cu31924084259872.pdf on page 51, quote:
“consensus facit legem (Consent makes law.) Whatever the parties agree to during the progress of a suit, is binding upon the Court, if (1) the parties consenting are under no disablility and (2) the consent is in violation of no law. Every person sui juris can do what he pleases with his own, so long as he violates no law and injures no one else. The agreements of parties during the progress of a suit are favored, and the court cannot go behind them, or revise them, or disregard them, or set them aside, except for fraud, accident or mistake. Where parties consent they bind the court; where they do not, or cannot consent ,the Court binds them” end quote.
However it is our job to learn how to competently hold our position with any agreement that has been made all the way through to the high court if necessary.
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So the key is that I just have to push the point that I amended the Statement of Accounts to my terms, sent the bills of exchange to discharge the liabilities, which the ATO has not returned or stated their protest.
Technically the ATO didn’t attempt to contest this but kept pushing with accruing interest and tacitly rejecting my payments.
I think the ATO is trying to drown my company by compounding the liability with interest. But my assets exceed the liabilities by 10+ fold.
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Have you created an agreement via a three step process?
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Yes, I wrote three times in our initial exchange of me sending the amended statements of account last year. Then I put them under default judgement. Every subsequent statement they sent and where I sent my quarterly BAS, I would refer back to the original default judgement. I also reminded them of their repeated rejection of my attempts to discharge my liabilities.
Got a trail of documents.
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That’s great, if you buy Module 17 Court Role play then you will have scripts you can use in court, if they force you in there, to hold your position competently, with the agreement you have established, to get the outcome you require.
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Yes, I listened to the module and will purchase the document pack should the time necessitate action.
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