Mesha Feet Pty Ltd v Allen acting as Deputy Commissioner of Taxation [2024] FCA 680

Mesha Feet Pty Ltd v Allen acting as Deputy Commissioner of Taxation [2024] FCA 680

The purported satisfaction of tax liabilities by promissory note or bill of exchange is not a payment method approved by the Commissioner, as required by regulation 21 of the Taxation Administration Regulations 2017 (Cth). As such, there is no genuine dispute as to the existence or amount of the debt the subject of the statutory demand, and the application to set aside the demand fails.

Parties
Plaintiff: Mesha Feet Pty Ltd; First Defendant: David Ronald Allen acting as Deputy Commissioner of Taxation; Second Defendant: Sriyan Wijesinghe acting as Agent of Deputy Commissioner of Taxation
Jurisdiction
Australia
Judgment Date
24 June 2024
Procedural Posture
Corporations Statutory Demand Review / Application for Review of Registrar’s Dismissal of Originating Process
Outcome
Application dismissed with costs.
Legal Topics
Setting Aside Statutory Demand, Means of Discharging Taxation Liabilities, Genuine Dispute Under Corporations Act S 459 H, Promissory Notes and Bills of Exchange as Payment
Corporations Law Taxation Law Insolvency Law Setting Aside Statutory Demand Means of Discharging Taxation Liabilities Genuine Dispute Under Corporations Act S 459 H Promissory Notes and Bills of Exchange as Payment

Case Brief

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Parties

Mesha Feet Pty Ltd

Plaintiff

David Ronald Allen acting as Deputy Commissioner of Taxation

First Defendant

Sriyan Wijesinghe acting as Agent of Deputy Commissioner of Taxation

Second Defendant

Procedural Posture

Corporations Statutory Demand Review / Application for Review of Registrar’s Dismissal of Originating Process

Legal Issues

  1. 1 Whether provision of a promissory note or bill of exchange constitutes payment of tax liabilities
  2. 2 Whether a genuine dispute exists as to the debt under the statutory demand
  3. 3 Whether the ATO is contractually or equitably obliged to accept alternative forms of payment for tax liabilities

Ratio Decidendi

The purported satisfaction of tax liabilities by promissory note or bill of exchange is not a payment method approved by the Commissioner, as required by regulation 21 of the Taxation Administration Regulations 2017 (Cth). As such, there is no genuine dispute as to the existence or amount of the debt the subject of the statutory demand, and the application to set aside the demand fails.

Court Disposition

Application dismissed with costs.

Orders

  • Second Defendant removed as a party to the proceeding.
  • Plaintiff's interlocutory application dated 5 January 2024 dismissed.