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Sole Trader need to discharge/reduce implied tax debt of $40k with amendment….
Hello freedom tribe!
I have been learning from Mark since 2019 and we have a trust (but haven’t opened the bank account yet). I’ve watched the 2019 and revised 2022 webinar on tax/prevention from Mark yet haven’t had to apply the knowledge until now. I just usually fly under the radar. I’ve been a sole trader running my own small business for 10 years. Usually my net income is rather low and I just apply the principle of telling ATO the basics (eg: I earnt $30k, spent $12k and have a net income that incurs no tax) to keep it simple. I play the middle path – one foot in the system playing the game and 1 foot out. In our mission to buy an acreage (for future food security & freedom), I had to show 2 years of good earnings so from 2019 and 2020 I’ve incurred 2 small tax debts of $2k and $2.7k. I barely knew they were there and never got any letters about them except 2 PAYG forms that I didn’t do anything about.
At end of 2021 we used a broker who told the accountant that I needed to show this big amount to get the loan (it was a catch 22, as I hadn’t earnt that much, but we played the game to get the land, even though I now realise I didn’t have to show that much – which sucks). My income was over inflated and many true deductions were omitted so my tax return is not correct and the accountant also moved the debt to a PAYG. I am grateful that this got us the property but now am stuck with this incorrect debt of $40k (even taking their fraudulent system at face value). Within their bs rules it should be about $8k total.
ideally I’d love to use the knowledge here to wipe it but I feel more confident using the middle path, acting in honour (even though their are pirates) and agree to a small debt. I wish to amend the incorrect return to lower the debt amount to a small figure and then we plan to use the knowledge here to get all hubby’s PAYG tax back for the last 10 years to pay off my small debt. Swings and roundabouts. My idea is that one of us plays their game (agreeing there is a debt but reducing it to a small amount, to reduce the ‘fight’ that I would find too stressful) and then one of us uses common law knowledge to request that the fruits of his labour are rightfully returned to him. We would work together to gain the end goal of my false debt being paid yet not out of our pocket, out of theirs.Mark says nowadays only 30% of those who try to get paid tax back are successful. I’d love to hear of anyone’s experience and advice here.
And has anyone else done a tax amendment as self employed that went through and was accepted by ATO?
I’d love to hear of all and any positive experience or advice.
Thank you all in advance. And thanks Mark for sharing what you know. Legend!
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10 Replies
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Thanks for sharing this info with me!
I’m wanting to amend using mygov (faster) but I did that already last year and it didn’t change anything. I printed the pages to show proof, but there’s nothing on mygov to show that the amendment went through their end, and I never heard anything back from them, nor did the false debt get amended as it should have.
Have people found that signing with ‘agent’ and “all rights reserved’ etc is a red flag indicating the man or woman is attempting to stand in their sovereignty and thus it can trigger them fighting back to keep their (false) power???-
Try ringing them and recording the conversation (let them know you’re recording for training purposes). Ask them to amend it for you confirm that it has been changed. Maybe just tell them you have tried and tried but can’t figure out how to do it.
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Thanks, yes I was thinking to do that exact task. I need to make the call when I’m feeling incredibly empowered, not tired and overwhelmed, but I will do this!! I liked the story of the other person who called to tell them she was under the threshold, unwell and wouldn’t need to do a tax rtn in future and the lady did it all for her. I like working with kindness returns kindness, so let’s see…I also bought the MODULES pack today so I’ll prep myself with reading all that first.
Thanks for your support Morag x-
This reply was modified 2 years, 4 months ago by em-divine.
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That’s my pleasure 🙂
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Hey Morag,
I am helping my partner fil lout her self employed tax return. Just wondering if you have to include the Declaration… Would it raise more suspicion with or without it?
We are wondering if it’s best on the first round of doing this to put just over $18,200 and pay $100 in tax, or just go like Mark said with the $500.
Also, does it matter if you use black or blue pen for the document… I’m assuming blue pen for signing ? And do you know if you tick Yes to the Australian Resident section?
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Appreciate any help 🙂
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I always use blue, you could ask Ant the question about Aus resident because I’m in NZ and Ant has already successfully completed this process.
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Hey guys, Do you mean that you are simply filing her tax return as a sole trader for the first time??
If so, there’s no need to use any of the sovereign method yet, because it is very easy to simply know who you are inside (not a taxpayer) and put any figures that don’t result in a debt. And yes there doesn’t’ seem to be 1 man or woman who sends an affidavit from a living man or woman who doesn’t get questioned. So if you’re not trying to reduce a debt or get a debt back then tehre is not much point raising a red flag in my opinion.
I have done this for 10 years until I needed to show a higher figure to get a loan for a property.
EG: gross $28k, expense $10k, net income $18k = no debt, no red flag, no worries. Easy as!
Is that what you meant??
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This reply was modified 2 years, 4 months ago by
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Hi all,
I have an update. I chose NOT to use the process from Mark’s documents because I personally feel that in my situation it may be more trouble than it’s worth and financially I need a WIN. I need to reduce this implied $40k debt to the lowest amount possible. It’s vital energetically to go with what feels right and true for yourself. As I recently received some flood money from the gov it feels right for me to play them at their game by their rules (at this stage) and whilst I am great at retaining this knowledge and info I am still a newbie and really don’t want to get “caught in the spotlight” not knowing which way to turn. I also find the energy of the ‘battle’ debilitating, so this is what I’ve done:
1) A standard straw woman amendment using mygov reducing my income and increasing my expenses to actual figures I can prove. Completed on the 16th Feb. I got notification from ATO that it was lodged. It came up with a $22k credit. Then showed amendment as “in progress”
2) 21 Feb I received an email asking me to call ATO to verify the claims in my amendment.
3) 22 Feb I called and explain that jobkeeper was added twice and a private car sale was also mistakenly included in income hence reducing my income by $32k and that some allowable deductions were missed (all true). They took notes, asked if I had paperwork to prove my claim, and I said “yes a profit and loss”….the lady was very kind, she said I should get an email soon to progress with the amendment & they may need the profit and loss. I said fine, but I lost my phone so please email only. I also recorded the conversation.
4) 6 March I get a mygov letter with an ATO debt statement with the full false debt still there and the amendment no longer shows “in progress”.
* I feel really pissed of and start writing my affidavit and a honourable notice of conditional acceptance thinking they’ve deleted my amendment. Then I chat to my partner who said “just call them” So I called Mar 16 to ask where my amendment has gone and they said it is in progress, not deleted. I asked them to put a stop on the debt letters and they did for 28 days. I quoted the tax Payers Charter and stated they have not met my rights and that I need help to complete the amendment and they escalated it and said a case worker will call me in 5 days….now I wait
Fingers crossed I get the debt reduced then I will request they release it due to financial hardship.
