ATO – Who to send promissory note to?

[brianchu82]

Hi Brandon,

I think you address the promissory note to the Deputy Tax Commissioner in the letter.

With the ATO, it is a little more complicated. I have been using the money order method to discharge more tax liability for my public company (not listed of course).

The ATO continued to send me the monthly statements that show they haven’t accepted my payment and my liability accrued with interest according to them. So I send follow up letters thanking them for the statement of account and putting them on default for refusing my method of payment.

I’ve done this since June 2023.

The ATO has attempted to call me twice the last three weeks which I haven’t picked up. I wrote a letter earlier this week to inform them I don’t take phone calls and asked them to write a letter providing details if they wish to discuss anything.

I’ll continue this process till they do something different. But I think my documentation setup is there.

God bless,

Brian

[Brandon-Nicholas]

Thanks @brianchu82 did you just send yours to “Locked Bag 1793 Penrtith NSW 1793” (the postal address on the statement of account)?

[brianchu82]

Yes that’s the address. I sent it to whichever address the letter came from.

[Lee-kl]

In relation to the interest the ATO or any government body charges, it is unconstitutional. They cannot add fees onto liabilities and how I know this is because I had a $74,000 tax liability. I contacted them via phone first and requested they send me all the documentation of how this debt came to be. When I received the doc it was mostly fee’s. So I called them and stated that under the constitution and quoted section 53 and first asked if this was being recorded and I wished to be recorded. I was recording as well. Then I quoted the following. And they reduced the tax debt back to the original debt of $6000.00. I told them I will not be paying that as the following applies to the GST added on that I did not consent to and that the government had no legal right to include. This was 4 years ago and I have not heard from the ATO about it since. Where as prior to that I as being threatened.

Under the Constitution section 53: “Proposed laws appropriating revenue or moneys, or imposing taxation shall not originate in the Senate. But proposed law shall not be taken to appropriate revenue or moneys, or to impose taxation by reason only of its containing provisions for the imposition or appropriation of fines or other pecuniary penalties, or for the demand or payment or appropriation of fees for licenses or fees for services under the proposed law. The Senate may not amend proposed laws imposing taxation or proposed laws appropriating revenue or moneys for the ordinary annual services of the government. The Senate may not amend any proposed law so as to increase any proposed charge or burden on the people”.

Q: What does this mean?

A” This passage refers to the legislative process in Australia, specifically regarding the origination of financial bills and the powers of the Senate.

Origination of Financial Bills:

a). Proposed laws related to appropriating revenue or moneys (essentially, budget-related bills) or imposing taxation cannot start in the Senate.

b). The House of Representatives (the other chamber of the Australian Parliament) is where such bills must originate.

c). In other words, the Senate cannot introduce bills that directly deal with taxes or government spending.

2. Exceptions:

a). However, a proposed law is not considered to appropriate revenue or impose taxation solely because it includes provisions for fines, penalties, or fees (e.g., fines for violations, licensing fees, or service fees).

b). These provisions do not trigger the restriction on origination in the Senate.

3. Amendment Powers of the Senate:

a). The Senate has limitations when it comes to amending certain bills:

1. It cannot amend proposed laws that impose taxation.
2. It cannot amend proposed laws that appropriate revenue or moneys for the ordinary annual services of the government (day-to-day operations).
3. Additionally, the Senate cannot amend any proposed law in a way that increases charges or burdens on the people

It outlines the rules governing financial legislation, emphasising the role of the House of Representatives in initiating budget-related bills and the Senate’s restrictions on amending certain types of financial laws

• This reply was modified 1 year, 2 months ago by  Lee-kl.

[brianchu82]

Fascinating!

So if I can ask, the reason for your tax liability ballooning to $74,000 from the original $6,000 tax debt was because the ATO charged interest on what they claimed to be your unpaid taxes as they did not recognise you discharging your liability using the different methods under the BOE Act 1909?

In the course of the debt bill ballooning, how long did it take for the amount to grow to $74,000?

And did they continually send letters to you threaten to reclaim your property to pay for your debt?

I’m interested to hear more because I have a registered corporate entity that the ATO is claiming has unpaid debt despite me sending them a money order for every BAS quarter to discharge the debt that is accrued from my quarterly submissions.

The assets in the company are more than sufficient to cover the liability they claim I owe so I am not insolvent by any stretch of the imagination.

I have received letters threatening to reclaim my property if I don’t pay. I have responded every such demands for payment by referring the the BOE Act 1909 Sections 47(2) and 48 and putting them on default judgment for refusing a legitimate payment and demanding further payment.

I’ll see how far this goes but your experience intrigues me.

Please provide more details if you can. It will help many who might be in a similar situation.

God bless,

Brian