Tax agreement between Australia and UK

[DimPrawn]

Isn't it incredulous the lengths the government will go to for a few quid in tax, and yet when it comes to tracking down murderous rapist illegals who have bunked off jail they take no interest at all?

Only in Britain......

[Mailman]

I should add that, although i believe that it's not currently done, the Revenue is considering outsourcing debt collection (apparently there's all sorts of privacy issues to be ironed out....)

Hahahahaha...this is the funniest thing Ive seen for ages!

Imagine the disaster this will be when private companies, with no morals or ethics, start going after people for money! Its gonna be a disaster I tells you...a disaster!

On a serious note, I had some feckers send me a letter (actually, it was addressed to someone with a similar, but not the same, name to me) demanding a couple thousand pounds or they would take me (or the person with a similar name to me) to court to get the money.

Had all sorts of people come around asking for the money but after I threatened legal action and involvement of the police I never heard from them again.

I wonder how many others would have just paid up in that situation?

Mailman

[privateeye]

I suspect that you're right, that it's a firm operating on behalf of the UK IRD.

I've been able to track down an interesting piece of legislation in NZ, the Reciprocal Enforcement of Judgements Act 1934. Basically, it allows for court orders issued in the UK to be applied for enforcement through the courts in NZ. If the courts in NZ agree, then the UK judgement can be applied in NZ and therefore UK debts (any debts, not just tax ones) can be collected in NZ.

As NZ and Australia have a fairly common legal history (together with and based upon the UK), I wouldn't be surprised if there was similar legislation in Australia.

Its not privatised, there are actual offices run by UK IR but who use locally based PI's for tracing. A lot of NZ/Oz law is not just based on UK law but actually has to pass through the Royal Courts of Justice on The Strand - until they ask/get independence anyway. There is also a lot of collaboration between UK and NZ/Oz Pi's to deal with divorce matters where one parent cannot get child access etc - or thinks they can hide without paying maintenance. I could trace a Kiwi/Aussie down from the UK even when they are back home, you can't hide it just depends on how much somebody wants someone and how much they would pay for it. A person not trying to hide would probably only cost £80 to trace, up to a £1000 if they are trying to hide but they will still get caught sometime - you just set the trap.

I got one Kiwi completely by surprise when I called him at home to request maintenance payments. He laughed in my face thinking I could do no more, the papers were emailed to a contact in Auckland who later that day (morning for me) hand delivered the papers which were valid in NZ.

[meridian]

I know the NZ one is Auckland, don't know about the Oz one. It would be nothing to do with NZ IRD anyway as its not their tax they are after. I can try and dig around for info - I got it from some PI contacts who were recruited to trace people who had run off without paying in the UK. The NZ and Oz Pi's quite often approach the UK PI's to get info on the various people to see if tey have come back etc.

As I understand it is not an agreement between tax authorities but an agreement between governments to recover debts. I have not worked on these cases so don't know the full details.

I suspect that you're right, that it's a firm operating on behalf of the UK IRD.

I've been able to track down an interesting piece of legislation in NZ, the Reciprocal Enforcement of Judgements Act 1934. Basically, it allows for court orders issued in the UK to be applied for enforcement through the courts in NZ. If the courts in NZ agree, then the UK judgement can be applied in NZ and therefore UK debts (any debts, not just tax ones) can be collected in NZ.

As NZ and Australia have a fairly common legal history (together with and based upon the UK), I wouldn't be surprised if there was similar legislation in Australia.

[privateeye]

Really? None of my contacts in NZ IRD have heard of any UK offices.

Would you happen to know where they have set up? Do they have a web presence, and/or street address?

I know the NZ one is Auckland, don't know about the Oz one. It would be nothing to do with NZ IRD anyway as its not their tax they are after. I can try and dig around for info - I got it from some PI contacts who were recruited to trace people who had run off without paying in the UK. The NZ and Oz Pi's quite often approach the UK PI's to get info on the various people to see if tey have come back etc.

As I understand it is not an agreement between tax authorities but an agreement between governments to recover debts. I have not worked on these cases so don't know the full details.

[meridian]

I am sure that changed in the last couple of years - I know for a fact the IR opened up offices in both NZ and Oz to combat people fleeing home to avoid tax.

Really? None of my contacts in NZ IRD have heard of any UK offices.

Would you happen to know where they have set up? Do they have a web presence, and/or street address?

[privateeye]

There's no agreement that the UK tax authorities can chase you to Oz for any unpaid taxes.

I am sure that changed in the last couple of years - I know for a fact the IR opened up offices in both NZ and Oz to combat people fleeing home to avoid tax.

[meridian]

I should add that, although i believe that it's not currently done, the Revenue is considering outsourcing debt collection (apparently there's all sorts of privacy issues to be ironed out....)

If this goes through, then there may indeed be a defacto arrangement in the future where debts are sold from the UK debt collector to an Australian debt collector, who will then proceed to recover the debt in Oz.

Not sure if this is going to happen though.

[aussieItman]

cool thanks for the info Meridian.

[meridian]

Is there an official tax agreement Australia and the UK? If so how does it actually work? If I returned to Australia owing £500 am I going to get arrested next time I land at Heathrow? Not that I intend to do that, but I have an unreliable accountant who I suspect is not doing a professional job of my running my company, but it seems a lot of hassle to change accountants at this stage.

Yes, there's a tax agreement between Oz and the UK, but it's only the double-taxation agreement. If you're tax-resident of Australia and earn taxed income in the UK, then file your Australian tax return declaring the UK income and you'll get a credit for tax paid here.

There's no agreement that the UK tax authorities can chase you to Oz for any unpaid taxes. What they can do is issue an assessment, find out you're a non-payer, take you to court (in your absence), issue a CCJ, send the bailiffs around to any known addresses, and/or order you bankrupt in the UK.

You might not get arrested at Heathrow, but you might find it difficult going about any sort of normal life if you intend to return for any period of time.

[aussieItman]

No basically I am quite happy to pay my taxes, but I don't want some silly little debt of a couple of hundred quid getting me in trouble back home. If it's going to cause me grief then I will make double sure that everything is above board before I leave.

[Spartacus]

Less hassle than getting a large tax bill, plus interest and penalties? For that matter, what if you're overpaying?

If the former is your contingency plan to flee the country?

[aussieItman]

Is there an official tax agreement Australia and the UK? If so how does it actually work? If I returned to Australia owing £500 am I going to get arrested next time I land at Heathrow? Not that I intend to do that, but I have an unreliable accountant who I suspect is not doing a professional job of my running my company, but it seems a lot of hassle to change accountants at this stage.