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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (nonEU countries): outbound indirect tax cases - requests for assistance - indirect tax DM action

 
 
 
 
 
 
 

General

Where you are pursuing a UK tax or duty debt for a debtor that lives or has assets in another country you can ask the MARD team to send a request to that country asking them to assist in

  • 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 or
  • recovering a UK tax or duty debt on our behalf.

Sending a request to the MARD Team

To request assistance from another country.

  • complete MARD (Non EU) 100 in full
  • send the completed checklist and all the relevant paperwork to the MARD team in Liverpool and
  • do not contact the tax authority in the other country direct.

Request for information

You will need to advise the MARD team of:

  • the type of request
  • the foreign country to contact
  • the full name of the debtor (including maiden name, if applicable)
  • the date of birth of the debtor
  • their place of birth (if known)
  • their legal status
  • their VAT Registration Number (VRN) if applicable
  • the full address in the other country and whether this is known or assumed address and
  • the information requested.

Tracing addresses

If you are trying to trace a missing debtor, you need to provide the full name of the debtor, date of birth and at least a partial address in the other country. It is unrealistic to ask an overseas authority to trace without this. Foreign countries will confirm doubtful addresses and provide details of lifestyle, assets and /or employment where possible.

If the request is for notification of legal documents, you will need to advise the MARD team of

  • the type of request (i.e. notification)
  • the country to contact
  • the full name of the debtor (including maiden name, if appropriate)
  • the date of birth of the debtor
  • their place of birth (if known)
  • their legal status
  • their VRN if applicable
  • the full address of the debtor in the foreign country and whether this is a known or an assumed address.

Include the documents that are to be served and provide the MARD team with a covering letter outlining the reasons for the request.

Requests for Recovery

If the case is a request for recovery action, the MARD team will not be able to pursue directors of limited companies for the debt as they are not liable for company debts in the UK. The only exception to this is if the director has been made personally liable for the debt.

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

In addition, you should only refer a case to the MARD team for recovery action if there are no known assets remaining in the UK, which could facilitate domestic recovery and none of the restrictions outlined in DMBM560025 apply.

Provide the MARD team with a covering letter outlining the request and all debt related documentation including

  • the type of request (i.e. recovery)
  • the foreign country to contact
  • the full name of the debtor (including maiden name, if appropriate)
  • the date of birth of the debtor
  • their place of birth (if known)
  • their legal status
  • their VRN if applicable
  • whether they are the principal debtor, the co-debtor or a third party holding assets
  • the nature and amount of the debt (including a breakdown of the principal debt, interest, penalties and costs) and
  • the full address of the debtor in the foreign country and whether this is a known or an assumed address.
  • details on how to bring monies received to account.

You must also include a copy of the:

  • demand letter sent to the overseas address and
  • supporting documentation for Excise debts, (i.e. duty assessment, breakdown of calculation of duty and a copy of the AAD issued).

Requests for Recovery Action for an indirect tax debt (not excise)

Before you send a request for recovery action, send a demand letter MARD (Non EU) 7 (not a DNIP) to the debtor at the overseas address.

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

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

Requests for Recovery of an excise debt

Before you send a request to the MARD team for recovery action, you must issue the duty assessment and a MARD (Non EU) 7 to the debtor at their address in the other country.

The timescale for submission of any appeal in respect of the debt must have lapsed before the case is forwarded to the MARD team for action.

After you have sent the MARD team your request

If after you have sent a request to the MARD team for recovery action the debtor disputes or appeals the debt, notify the MARD team immediately.

They will then ask the foreign country to suspend their action. Once the dispute or appeal has been finalised, notify the MARD team who will notify the other country and if appropriate ask them to continue with any recovery action.

The MARD team will

  • keep you updated and
  • notify you when the tax or duty has been recovered and the money transferred from the other country
  • arrange for the money to be transferred to the relevant account.

If an excise debt, the money will be transferred to the appropriate Accounts team so that it can be brought to account.

If you receive payment of the debt locally, however, notify the MARD team immediately. They will notify the other country on your behalf and close the case on their system.