EM1001 - Debt Management
Most of the routine accounting functions have been taken over
by the SAFE system, leaving Debt Management (DM) Officers in local
offices with the compliance aspects of the job: chasing up those
who will not or cannot pay. Much money is brought in through the
application of pressure through reminding letters, telephone calls
and visits to premises or private houses. The main formal actions
which can be taken locally are
- Distraint (‘poinding' in Scotland). DM Office has statutory authority to distrain upon a defaulter's goods. Action obviously depends upon the availability of goods, but where there are sufficient, distraint is very effective, the threat of it usually being enough to secure payment
- County Court Proceedings: judgement may be obtained for the debt in the County Court.
- Summary Proceedings: small arrears may be pursued through the Magistrates Courts
In the course of pursuing arrears, DM often discover information
about the defaulter which would be of use to enquiry officers in
building up a picture of the taxpayer and his or her personal
finances. It may be that there are details of a local call. Even if
contact was not made with the taxpayer, there may be some notes
about the private house and any other available pointers to
personal wealth
When reviewing the file, look out for indications that the
taxpayer is a bad payer. Such evidence either indicates their
attitude to paying tax (and possibly compliance generally) or
genuine financial difficulties or both. There will be a chance that
DM has had some contact. It could be that assets have been assessed
for distraint purposes, or the taxpayer has been examined in the
County Court
But liaison should not be a one-sided process. You may hold
information which is of use to DM. In cases where you have not had
any co-operation from the taxpayer, or you believe there are means
problems, you should always alert DM to the fact that collection is
likely to be difficult and provide as much useful background as you
can
EM3955
