DMBM560130 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): requests for recovery from other member states - EIS Summary Warrant Team action

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International Debt Unit, MARD team referrals

Where:

  • another member state has asked the UK to recover a tax or duty debt owed to them by a debtor living in Scotland
  • the International Debt Unit, MARD team have been unable to obtain payment from a debtor themselves
  • Summary Warrant action has been determined as the next appropriate recovery action

the International Debt Unit, MARD team will send the debtor an IDMS10 SEES enforcement letter and enforcement factsheet.

If the debtor fails to pay or respond to the warning letter, they will refer the case to you for action. They will send you full details of the debt due. They will also transfer ownership of the debt to you (This content has been withheld because of exemptions in the Freedom of Information Act 2000).

Take action to recover the debt, using the same procedures as you would for an equivalent UK tax or duty debt by obtaining Summary Warrant and arranging for service of a charge for payment.

Debtor requests time to pay

If the debtor requests time to pay, deal with as per the guidance in DMBM800000.

If the offer would not be acceptable if it were a UK debt, reject the request as per the normal guidelines.

If the offer would be acceptable if it were a UK debt:

  • advise the debtor that the agreement is acceptable as per the normal rules
  • notify the International Debt Unit, MARD team of the details of the proposal
  • transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)record back to the International Debt Unit, MARD team to monitor the case to ensure the debtor does not default.

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Debtor pays

Payments will normally be made direct to the Accounts Office Shipley who will then allocate the payment to the charge(This content has been withheld because of exemptions in the Freedom of Information Act 2000).

If payment is made in full, including UK enforcement fees and costs, transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)record back to the International Debt Unit, MARD team and close your case.

Where it is only possible to secure payment from the debtor for the debt alone, UK enforcement fees and costs should be deducted from any payments recovered. The balance should then be set off against the other member state’s debt.

If the payment is a time to pay instalment, tell the International Debt Unit, MARD team about the receipt of the instalment(This content has been withheld because of exemptions in the Freedom of Information Act 2000).

If the payment is a part payment, but not part of a time to pay proposal:

  • tell the International Debt Unit, MARD team about the receipt of the part payment(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • recalculate the UK interest due on the remaining balance if appropriate
  • write to the debtor requesting the remaining payment plus the additional interest
  • BF for one month.

If the debtor hasn’t paid the outstanding balance on the BF, continue with your Summary Warrant action, following the guidance at DMBM670350.

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Debtor disputes the debt

If the debtor disputes their liability to, or the accuracy of, the debt, deal with their dispute as per the guidance in DMBM560160.

HMRC enforcement fees

UK fees should be charged and accounted for in accordance with normal practice. Such fees are retained by the UK.

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Debtor unable to pay

If the debtor is unable to pay and insolvency or sequestration is not appropriate:

  • send the International Debt Unit, MARD team details of why the debt can’t be recovered(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) record back to the International Debt Unit, MARD team
  • close your case.