Tax demanded with menaces?

Tax demand

Didn't find your answer?

I sent an LP2 on 21/9/16 requesting that the s 455 tax repayable be offset against the corporation tax due for the y/e 31/12/15. The Revenue have received my letter but told me they have not got around to dealing with it yet.  Meantime, Debt Management have sent my client a letter demanding the tax, which is not due, with interest.  Does this constitute blackmail the definition of which is a follows:

The offence of blackmail is set out in s.21 Theft Act 1968. Under the Act, blackmail consists of making an unwarranted demand with menaces with a view to making a gain or causing a loss. By s.21(3) Theft Act 1968, the maximum sentence for blackmail is 14 years.

Replies (3)

Please login or register to join the discussion.

By Tim Vane
17th Oct 2016 14:26

No of course not. Debt management are chasing a debt which they believe is due, and on the basis of the evidence given, is actually due. Read s21(1)(a) of the Act.

Thanks (0)
avatar
By Manchester_man
17th Oct 2016 15:05

You have provided the tests.
Let's see whether they have been breached.

1. Making an unwarranted demand - Certainly not unwarranted to demand payment of monies owed. The client owes the Corporation tax.

2. Making such a demand with menaces. Have they been particularly menacing? Have they said that they will spread lies about your client if the tax is not paid? Have they said that they will circulate photographs of your client in uncompromising situations?

You say that HMRC are chasing tax that is not owed? Do you think that because you have asked for a 'set-off' that this means the tax is not owed?

This would be the case if there was an automatic right of set-off, however, I don't believe there is.

It's a tough one, but on balance, I would probably chalk it down to experience and save the legal fees.

Tip: Don't phone DMB all guns blazing and citing the Blackmail Act. Explain the situation and ask them to put the action on hold.

Simples

Greetings

Thanks (0)
Portia profile image
By Portia Nina Levin
17th Oct 2016 16:29

There is a precedent for this. Rex v Puddle.

Was the demand written in intimidating, bright red ink; with previous demands having been written in quiet, pacific blue?

http://www.malaysianbar.org.my/index2.php?option=com_content&do_pdf=1&id...

Thanks (1)