tax due in 1998!!

tax due in 1998!!

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Client was due a tax refund in 5 April 2010 tax year.....HMRC have claimed it to clear tax that was due in 1998 and not paid!! CAN they go back 12 years and do this???

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By cymraeg_draig
23rd Aug 2010 23:26

Yes - but .........................

For any other debt there is a general limit of 6 years assuming they have not been actively purusing it during that period.  However, the Crown is immune from this ruling.  

This of course is grossly unjust as THEY can chase you forever, but, if they owe you money you are limited to 6 years.  On this basis the rule is open to challenge in the european courts, but, it will require someone with very deep pockets to fund such an action. 

I would certainly be insisting that HMRC supply calculations to substantiate the claim, and, supply a full statement of account from the year before the alleged debt arose to date to allow you to check the veracity of their claim.  If they have not chased or actively pursued this debt for several years then I would consider refering it throug their complaints proceedure (which will get you nowhere but has to be done) with the aim of reaching the adjudicators office. Your arguement (assuming the liability is correct) being that it is unreasonable and although lawful it is against natural justice to pursue something so old, and, that having not been chased for xx years your client was reasonably entitled to assume the matter to be closed.

 

 

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By Robert Hurn
24th Aug 2010 11:15

Agree with WD (as ever)

If you can follow the complaints procedure as far as the Adjudicators office, whilst they cannot make HMRC write off the historic debt, they are likley to comment that HMRC may consider this course of action and in all likelyhood HMRC will do so.  Cost nothing but the time to porduce a few letters, but is quite a long process due to the backlog at the Adjudicators office.  I can't imagine why they are so busy.

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