Page:Mesha Feet Pty Ltd v Allen acting as Deputy Commissioner of Taxation.pdf/12

 :(1) Eight pieces of Federal legislation support a proposition that bills of exchange, promissory notes and money orders are "Australian Currency" and "Money".


 * (2) The ATO's documents say it accepts cash and cheques as means by which tax debts can be paid.


 * (3) By reference to a photocopy of a $100 note, "cash" is a promissory note, so therefore it is not correct for the Defendant to submit that the purported satisfaction of the 2021 tax liability by the "Promissory Note" was ineffective.


 * (4) There was nothing expressly prohibiting the discharge of tax debts by provision of a promissory note or a bill of exchange, and harmony with the provisions of the eight pieces of other legislation referred to supports promissory notes, and bills of exchange, being an effective means of payment of tax liabilities.


 * (5) The ATO has issued public documents threatening prosecution (and even prison or a fine) if its notices are not complied with, so there should be consequences arising from the ATO's failure to comply with notices issued by Mesha Feet.


 * (6) The ATO did not return the "Promissory Note", and therefore the consequences stated in Mesha Feet's correspondence followed, and the provision of that note was effective to discharge the 2021 tax debt. It was suggested that there was some kind of "equitable estoppel", or agreement reached.


 * (7) If the ATO rejected the "Promissory Note" it was rejecting payment, and, by reference to a maxim attributed to Sir Edward Coke—"money refused liberates the debtor"—Mesha Feet was free of any debt in respect of the 2021 tax legality.


 * (8) Cheques are a form of bill of exchange and, as the ATO says it accepts cheques, a tax liability could (contrary to the Defendant's position) be discharged by provision of a bill of exchange.


 * (9) The "Statement of Account" issued by the ATO dated 30 May 2023 was an offer to Mesha Feet, which was incomplete. The "offer" did not say it was not negotiable, so it was capable of being modified and returned by Mesha Feet with stated terms, which Mr Togbui signed, thereby creating a contract on the basis that the "Bill of Exchange" constituted consideration to support conclusion of the "contract". The "Bill of Exchange" was not returned, but was retained for more than 72 hours and the cheque was banked. There was therefore acceptance and a contract to discharge the 2022 tax Mesha Feet Pty Ltd v Allen acting as Deputy Commissioner of Taxation [2024] FCA 680