Revenue
gets tough on collection
February
2002 |
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| The
Revenue has now restyled its Collectors of Taxes as the Revenue
Receivables Management Service and is set to take a much tougher
approach to debt collection. |
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Apparently
the Revenue has been lagging behind Customs in its debt collection
performance and is aiming to bring this into line. Receivables
Managers are being given strict timetables and targets. Outstanding
liabilities over £5,000 in respect of the 31st January
2002 self-assessment tax will be immediately passed to local
offices. They will make one telephone call only to chase
the debt and even if a promise of payment is received, they
will nevertheless immediately put in place the necessary recovery
procedures so that they can be actioned straight away if the
promised payment does not arrive. |
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| Similar
procedures will apply for Corporation Tax and PAYE/NIC. It will
no longer be so easy to agree instalment payments on the grounds
of cashflow problems. Receivables Managers will apply standard
national criteria when looking at each individual case. They
will consider the clients' payment history and will expect them
to show that their banks will not lend the necessary funds.
A dim view will be taken if it is found, for example that the
client has taken a holiday or bought a new car rather than paying
his outstanding tax. |
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| It
is also expected that from April 2002 the Revenue will be more
inclined to issue determinations of tax and to seek daily penalties.
In the past daily penalties have tended to be sought in only
the most serious cases but this now looks set to change. |
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Clients
need to be warned of this new approach and must note that
the Revenue will no longer be a soft touch as an available
source of additional short term finance.
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