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VIC ATO Computer Generated Debt - What to Do?

Discussion in 'Debt and Bankruptcy Law Forum' started by Tim osborn, 8 April 2016.

  1. Tim osborn

    Tim osborn Member

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    Last year, I did my wife's tax on My tax. she makes 14 to 25 thousand a year, due to the mining co. laps and a knee operation. We had to dip into savings and nest eggs to stay afloat.

    As part of this, she sold 92 Comm bank shares that she never bought. We are not wealthy enough to be investors. The shares came from when Comm bank bought Colonialmutal and had had to offer a share hand out to those with policies. This selling registered her automatically as an investor to the ATO unbeknownst to us. (The computer does it, this making it alright). As part of this, she was put on a forward payment program that we did not know about.

    My wife has learning difficulties and cannot read well and understand comprehension. She is not alone in the world with this. She will not use online services as she cannot understand the pop-up boxes. (How is she going to read the My tax web page?)

    Today, a debt collector contacted her causing her to come home in tears as to where we will find the money the ATO have asked Dun & Bradstreet to collect. This money is apparently for all the investments she has and may need paying next FY. The ATO were contacted today 08/04/ 16 and did not offer a solution myself or wife understand.

    Question: If I let Dun and Bradstreet take us to court, force us to stress, will we have a case for wrongful harassment, causing my wife to stay at home depressed? This causes me anxiety and thoughts of State hate for those struggling. (Remember it's all ok as the computer did it, no one made and signed off this system).

    Is there a way to make the ATO or the creators of this program responsible for their callous actions? I have contacted the ATO and debt collectors and both say it is my problem and need to fix it.
     
  2. Sophea

    Sophea Well-Known Member

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    I am very doubtful of your prospects of suing debt collectors for harassment. Debt recovery is a job they have been hired to do. Provided they comply with certain industry protocols they are within their rights to pursue you for the debt.

    I would be asking myself: Is the tax they are asking for justified under tax law? (You will need to see an accountant or lawyer about this) And if so, perhaps you should have obtained advice before selling shares, as to the tax consequences.
     
  3. Tim osborn

    Tim osborn Member

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    Thanks for the reply

    There has been a bit more transpired on this, the debt was caused by the fact she had to pay a return. the computer automatically set her up with an activity statement to fill out and return. (GST ) Then used a digital mail box she did not set up to inform her of this. (there is no way of telling how it was set up.)

    This was not done because she sold the shares or has an interest in a House that is now worth nothing due to the mining downturn collapsing regional towns in their areas and returns generous but unwanted negative gearing. ( We had to move out of town due to redundancy) The warning should have been made that if you have to pay a return then you will automatically be set up to make pre payments for the next financial year ( before the money is made) even if you make 18,000.00 a year and will never pay a tax return again in your life.

    The ATO have looked at this and have reportedly removed the debt from the collectors as there is no business to collect activity payments from. They should have never been set up in the first place,

    I suppose it is cheep and cuts costs to not have a check system for government and big business however as a lowly citizen you could go to court for a virtual debt you never will have
     
  4. Sophea

    Sophea Well-Known Member

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    Glad this has been resolved : )
     

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