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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) (non-EU countries): outbound direct tax cases - requests for recovery - MARD Team / NNRU action

General

You may request assistance from another country to recover a debt where the debtor lives in that other country.

The total debt in question must be for at least the minimum threshold for that country. The debt may include any tax or debt plus any, penalty, surcharge and interest due on it, and costs.

The rate of exchange applied to determine the country’s currency equivalent of the total debt is the monthly rate of exchange found on the HMRC Internet.

Recovery action within the UK must be exhausted before we ask for assistance.

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

Action to take

  • Prepare

    • the relevant recovery form(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • the IPE (certificate of debt) and
    • any other relevant documents
  • arrange for the papers to be translated if needs be(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

The certificate of debt must be signed at Officer level or above.

Once the documents are returned

  • photocopy all the papers for the file
  • send the original papers to the other country
  • update HMRC records as appropriate.
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

On receipt of acknowledgement from other country B/F the case (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If no acknowledgement received, send a written reminder to the requested country.

Further enquiries

Deal with any subsequent enquiries from the debtor or the requested country as the case progresses.

If the debtor disputes the debt

  • obtain the reasons for the dispute in writing
  • fax instructions to the requested country to suspend recovery action until further notice.
  • (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)
  • take action to resolve the dispute / forward a copy to the originating DM team to consider as appropriate.

If the dispute has been received via the requested country

  • ask them to suspend their recovery action and
  • (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)
  • take action to resolve the dispute as above.

Debt cancelled

If the debt is cancelled

  • notify the requested country (by fax)
  • update HMRC systems
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close the case.

Debt confirmed as due

If the debt is confirmed as due

  • ensure the debtor has been advised
  • ask the requested country to continue with recovery action (by fax) and
  • update HMRC systems.

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

Payment

Payment made via foreign country

If the requested country successfully recovers the debt

  • ask them to inform you whether payment will be

    • in full or by instalments
    • made direct or via the requested country.

When the Payable Order or cheque is received (normally it will be multiple orders for different debtors)

  • deal with payment according to normal rules
  • update HMRC systems as appropriate
  • acknowledge receipt of payment to the foreign country.

If part payment is received (e.g. time to pay has been agreed)

  • update HMRC systems with the details of the payment and
  • (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)

On receipt of next payment follow the procedures above until all the debt is paid.

Payment made direct to UK

Deal with any payment received according to the normal rules.

If a part payment is made direct to the UK, notify the other country of the receipt of the part payment and update the relevant HMRC systems accordingly. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If payment is made in full direct to the UK

  • notify the other country and ask them to cancel their action
  • update the relevant HMRC systems
  • close the case inserting the reasons for closure and payment details and
  • PA file.

Payment not made

If the other country is unsuccessful in recovering the debt they will

  • provide a report and
  • return all the documents if requested.

On receipt

  • review the case and if necessary
  • seek further information / notify the relevant office as appropriate
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • if no further action is required, close the case on Non EU MARD database inserting reasons for closure
  • PA file.

(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)