SG67100 - The security: using security: using a performance bond: calling in the performance bond

You may call in a performance bond only once and only to the maximum value stated in it. For these reasons the tax debt should exceed, or form a substantial part of, the value of the bond.

You should write to the financial institution, using Performance bond letter 24a, to request immediate payment under the terms of the bond. You must not ask for more than you need to satisfy the debt.

The amount paid should be placed on Miscellaneous Cash Deposit (MCD) and you should ask DMB Banking to bring the MCD deposit to the person’s tax account, for example, against the person’s account on the VAT Mainframe.

When payment is on file return the bond to the financial institution, using Performance bond letter 24a, confirming receipt of payment and discharge of their liability under the bond.

Advise the person what has happened using Performance bond letter 25.

Consider the need for further security, see SG68000.

If the person has deregistered for VAT/environmental taxes take no action until the final liability (period 99/99) is on file.