DMBM668430 - CCP: Equitable liability - Revenue loss
Action by EIS
On accepting that a case is appropriate for equitable liability, EIS will ask the local processing office to calculate the equitable liability, and advise the taxpayer of the reduction, and then notify you (This text has been withheld because of exemptions in the Freedom of Information Act 2000).
Action by debt pursuit office
When you receive notification from EIS, proceed as follows:
Debt remitted in full
Discharge any interest charge and treat the costs as irrecoverable.
If an adjourned hearing date has been set, inform both the court and the debtor that, having regard to the circumstances of the case and without prejudice to HMRC’s legal claim, you have been authorised by the Commissioners for Her Majesty’s Revenue and Customs not to proceed any further in the matter.
Debt remitted in part
Where a balance of the debt remains, recalculate any interest accordingly. You should write to the taxpayer asking for payment of the revised amount plus fees.
Judgment not yet obtained
If you have not obtained judgment, make application for payment of the balance including fees. If payment is not received, apply for entry of judgment in default.
Where the action has been adjourned, apply on form N244 to the court for a hearing date. At the hearing, inform both the court and the defendant that the amount claimed is properly due under the Taxes Acts but having regard to the circumstances of the case, you have been authorised by the Commissioners for Her Majesty’s Revenue and Customs to abandon (the amount remitted) of the claim. Seek judgment for the balance of the claim plus fees.
If judgment had already been obtained, take enforcement action as necessary for the balance. It is only necessary to notify the court of the reduction if you take enforcement action and you should show the reduced debt on the appropriate request form.
Payment made
Immediately you receive payment of the reduced claim, remit the balance.
Payment not made
If payment is not made
- refer the arrears to EIS
- attach a covering memo to the papers quoting
- the full EIS reference and
- drawing attention to the equitable adjustment.
