Mr. Peters submitted his income tax returns to the ATO in Sydney. A taxable income below the tax-free threshold is indicated by the last four years' worth of income tax returns. After a thorough enquiry, an ATO auditor concluded that Mr. Peters had concealed $400,000 in income over the previous three years. Throughout the investigation, Mr. Peters remained uncooperative and threatened to flee the nation with a bag full of gold nuggets he had acquired via the sale of real estate. The Commissioner plans to exercise his authority in the following ways:

1. raise and serve an assessment making tax payable immediately; and

2. collect the tax debt outstanding.

What authority would or might the Commissioner have in relation to the law governing tax administration?

(15 marks)