32 Section 16A(3) provides that, without limiting s 16A(2), the regulations may make provision for and in relation to the making of payments using collection agents, electronic funds transfer systems, credit cards, or debit cards.
33 Regulations were duly made. Regulation 21 of the Regulations is in the following terms (emphasis in reg 21(2) added):
Payment of tax-related liabilities
(1) A person who pays a tax-related liability must pay the liability in Australian currency.
(2) The person must pay the tax-related liability using a method approved by the Commissioner and in accordance with any instructions provided by the Commissioner.
(3) The person must pay the amount of the tax-related liability in a single payment unless the Commissioner agrees that the person may make more than one payment.
34 Arguments about whether the proffered "Bill of Exchange" or "Promissory Note" were "Australian Currency" (for the purposes of reg 21(1)) do not need to be determined as neither provision of a promissory note, nor provision of a bill of exchange, is a method approved by the Commissioner for the payment of taxation liabilities pursuant to reg 21(2).
35 The ATO's website, a screenshot of which was in evidence, sets out the specific means by which tax liabilities can be paid, such as by direct debit. It does not say promissory notes or bills of exchange will be accepted.
36 The Defendant also argued that the failure of the ATO to respond to Mesha Feet's multiple pieces of correspondence by expressly rejecting the "offers" so made, may not be desirable, or in accordance with its own published guidance about responding to taxpayers who make offers or proffer payment on conditions, but did not mean that the means of payment proffered by Mesha Feet had been accepted.
37 The Defendant finally argued that the "Promissory Note" was not an effective promissory note in any case as it did not contain a promise to pay and the effect of the document was unclear. The Defendant argued that the "Bill of Exchange" was also ineffective as it was issued to and by the same person, and stated a sum certain of only $48.86.
38 The main elements of Mesha Feet's arguments, as best they can be understood, were as follows:
