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Asbestross

HMRC - MARD Portuguese Income Tax?

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Morning all,

 

My mother received a letter around a week ago from the HMRC advising that under MARD they are chasing her for an overdue Income Tax bill from when she lived in Portugal around 5 years ago.

 

Firstly, they had a business over there which turned a negative balance during its short few months trading, my mother was not employed as a secretary and did not draw a salary during trading, so quite confused where they reached this figure.

 

Have already sent a letter contesting the validity and sums and requesting full documentary evidence of liability and full breakdown of the alleged debt, but yet to hear anything back.

 

Does anybody have any experience with the Mutual Assistance in Recovery of Debt department within the HMRC that could offer any assistance, as this is a grey area for me unfortunately.

 

Thanks in advance,

 

Asbestross

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I don't understand. Why would HMRC be entitled to tax related to a business operated from Portugal ? Did this company trade with the UK and therefore HMRC have picked up transactions in the UK ? The tax bill will be estimated presumably based on these transactions ?


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I don't understand. Why would HMRC be entitled to tax related to a business operated from Portugal ? Did this company trade with the UK and therefore HMRC have picked up transactions in the UK ? The tax bill will be estimated presumably based on these transactions ?

 

There are reciprocal agreements between EU member states allowing each other to collect taxes on each other's behalf.

 

see; http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM560015.htm


Anthrax alert at debt collectors caused by box of doughnuts

 

Make sure you do not post anything which identifies you. Although we can remove certain things from the site unless it's done in a timely manner everything you post will appear in Google cache & we do not have any control over that.

 

Vir prudens non contra ventum mingit

 

[sIGPIC][/sIGPIC]

17 Port & Maritime Regiment RCT

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Thanks for your help guys, i'll have a look through the literature posted.

 

From what i've read so far, there's an agreement setup between the UK and most EU states that allows the UK HMRC to collect on foreign debt. The problem with this being is that when challenged, the ownace of proof still lies with the originating country.

 

We've sent a letter disputing all, for varying reasons:

 

  • The company operated at a loss on all months of trading, hence no income / revenue taxes were liable. Upon leaving the country, this was confirmed with the accountant over there.
  • My mother and father, took no salary from the business throughout the whole period of business.
  • This is apparently from May 2007. I believe i'm correct in saying that the limitations act equivalent in EU states is 5 years?
  • No notice or demand of any kind has ever been sent regarding this up until this point (some 5 years & 7 months after apparently accrued).

I've advised mum to hang fire and see what response she has from the dispute letter. But in all honesty looking at the points above, I dont see how the HMRC will continue with this.

 

The only 'proof' they sent with their original letter was a copy of the MARD agreement that the portuguese IRS had signed..... and detailing the sums claimed was made up of ~75% fee's and interest. :|

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This is apparently from May 2007. I believe i'm correct in saying that the limitations act equivalent in EU states is 5 years?
That's normally true but certain debts, particularly government debts are not usually included in the Statute of Limitations. You will need to check whether that is so in Portugal.

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Make sure you do not post anything which identifies you. Although we can remove certain things from the site unless it's done in a timely manner everything you post will appear in Google cache & we do not have any control over that.

 

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[sIGPIC][/sIGPIC]

17 Port & Maritime Regiment RCT

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Hi Asbestross,

I've received a similar letter - what was your outcome?

 

Thanks

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