I've had trouble with Australia. very similar story. i'm not sure i want to rechallenge them. if i wrote a nice letter to a manager in the ATO do you think he will review things? I've paid everything they ask, so there is no chance of getting screwed further is there?
Having had a similar problem in the past, I went to my local MP's office and they / their electorate secretary was able to intercede on my behalf. Problem was resolved pretty quickly after that.
Quick solution: pay more than the IRD is asking for, then they'll owe you and it's usually pretty easy to get money from them when they owe you (in my experience anyway).
It also avoids the whole late payment situation until you can get the issue resolved.
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