Prince Leonard claimed that the ATO sent him a tax demand in 2012 to which he simply responded with a document stating that he was a "foreign national and non-resident of Australia". He also repeatedly claimed that he was classed by the ATO as a "non-resident of Australia for income tax purposes" and did not pay tax. In 2017, however, Justice Le Miere of the Supreme Court of Western Australia ordered Leonard to pay more than A$2.7 million in unpaid taxes, and Arthur Casley to pay more than A$242,000 in unpaid taxes. The judge said that their argument of sovereignty "has no legal merit or substance. Anyone can declare themselves a sovereign in their own home but they cannot ignore the laws of Australia or not pay tax." An appeal to the Court of Appeal was dismissed.