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HMRC internal manual

Debt Management and Banking Manual

DMBM560235 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (OECD and DTA): Referring cases to the International Debt Unit, MARD Team

When can a case be referred to the International Debt Unit, MARD Team

Where you are pursuing a UK tax or duty debt for a debtor that lives in or who has assets in a country with which we have a reciprocal recovery agreement, you can ask the International Debt Unit, MARD Team to send a request to that country asking them to assist in recovering a UK tax or duty debt on our behalf.

If the request meets the criteria set down in the agreement, the International Debt Unit, MARD Team will send the request to the other country on your behalf.  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)   They will also not send a request if the debt is currently being disputed.

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

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
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • recovery action in the UK is not appropriate
  • the individual or company liable to pay the debt is resident or has assets in that country. If the debt is for a limited company, it is the company that must be established or have assets in that country, 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 country 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 International Debt Unit, 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 requested country 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 requested country and if appropriate ask them to continue with any recovery action.