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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): referring cases to the International Debt Unit MARD team

When can a case be referred to the {#IDAZBFNF}International Debt Unit, MARD team {#}

Where you are pursuing a UK tax or duty debt for a debtor that lives in, or has assets in, another member state, you can ask the International Debt Unit, MARD team to send a request to that member state asking them to assist in either:

  • providing information, such as checking an address, confirming the identity of a resident or whether they have any means of payment of the debt
  • notifying/serving legal documents on our behalf
  • recovering a UK tax or duty debt on our behalf.

If the request meets the criteria set down in the legislation, the International Debt Unit, MARD team will send the request to the other member state on your behalf. If it is a request for recovery, they will not send a request unless the debt outstanding is for 1,500 euros or more. They will also not send a request if the debt is currently being disputed.

Who can refer a case to the {#IDACVJQH}International Debt Unit, MARD team {#}

Cases can be referred to the International Debt Unit, MARD team by any debt management team involved in the recovery of a UK tax or duty debt from a debtor living in another member state.

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How to refer requests

The action you need to take depends on the type of request.

Requests for information

Send an email to the International Debt Unit, MARD team using inbox(This content has been withheld because of exemptions in the Freedom of Information Act 2000) with the following information:

  • the other member state to contact
  • the tax type
  • the age of the debt you are pursuing
  • the full name of the debtor
  • the legal status of the debtor
  • if an individual the maiden name of the debtor (if known)
  • if an individual the date of birth of the debtor (if known)
  • whether the debtor is the principal debtor, a co-debtor, or a third party holding assets of the debtor
  • the UK tax reference for the debtor
  • the address of the debtor in the other member state and whether this is a known address or an assumed address
  • the information requested.

If you are trying to trace a missing debtor, you need to provide at least a partial address in the other member state. It is unrealistic to ask an overseas authority to trace the debtor without this. Other member states will confirm doubtful addresses and provide details of lifestyle, assets and/or employment where possible.

Requests for notification

If you have an electronic version of the document to be notified you can send it to the International Debt Unit, MARD team by email(This content has been withheld because of exemptions in the Freedom of Information Act 2000) . Otherwise, you will need to send the documents to them by TNT.

To make the request, the International Debt Unit, MARD team will need the following information:

  • the other member state to contact
  • the tax type
  • the age of the debt
  • the full name of the debtor
  • the legal status of the debtor
  • if an individual the maiden name of the debtor (if known)
  • if an individual the date of birth of the debtor (if known)
  • the UK tax reference for the debtor
  • the full address of the debtor in the other member state
  • whether the debtor is the principal debtor, a co-debtor, or a third party holding assets of the debtor
  • the date the documents need to be notified by
  • the purpose of the notification; for example, to ask for payment, to inform the addressee about the documents
  • a description of the documents to be notified; for example, tax assessment, payment request, outcome of an appeal
  • name and reference number of the document to be notified
  • details of the debt, including the date of establishment, a breakdown of the debt, when the debt should be paid by
  • contact details of the office to contact in the event of a dispute.

If the information above is already contained in the document to be notified, there is no need to provide it separately.

Request for recovery

Before you can refer a request for recovery to the International Debt Unit, MARD team, you must ensure that:

  • a MARD10 SEES letter has been sent to the debtor at their overseas address and that the debtor has failed to respond to this
  • the debt is not in dispute and any appeal period in respect of the debt has elapsed
  • the total debt is for at least 1,500 euros (including interest, penalties and UK costs incurred)
  • recovery action in the UK is not appropriate
  • the individual or company liable to pay the debt is resident or has assets in another member state. If the debt is for a limited company, it is the company that must be established or have assets in the other state, not the director. The only exception to this is if the director has been made personally liable for the debt.

To make the request:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) insert:

    • the member state to contact
    • the date the MARD10 SEES letter was issued to the debtor
    • the Accounts Department Reference number (if the debt is an EECD debt)
    • contact details of the HMRC office who will deal with any dispute about the debt

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • transfer the debt to the MARD team(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the debtor disputes the debt after the case has been referred to the International Debt Unit, MARD team, tell the International Debt Unit, MARD team immediately. The International Debt Unit, MARD team will ask the other member state to suspend their recovery action until the dispute has been finalised.

Once the dispute has been finalised, tell the International Debt Unit, MARD team of the outcome. The International Debt Unit, MARD team will update the other member state and if appropriate ask them to continue with any recovery action.