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29 Aug 08 A warning on direct debits

MEMBER 4 writes:

"A client entered into a payment arrangement with ATO whereby a set amount would be debited from his account each fortnight to reduce his debt.
 
Recently an Income Tax refund extinguished the ATO debt prematurely but the ATO continued to debit his account each fortnight. The client withdrew the Direct Debit authorisation & I organised a refund to the client. Undeterred, the ATO sent a letter to say that it could not access the account & to use the attached payment slip to make the payment.
 
The ATO mindset was that it wanted a set amount for a predetermined number of fortnights & it was immaterial that there was no debt."

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