Can they take my property?

[needluck]

Hi All,

I am currently under tax investigation by the Belgium tax authority. I worked there years ago, part of the earnings paid Belgium tax, other part paid UK tax. Although the accountant and agency knew about the situation, no one warned me that this was not allowed. Anyway, to cut long story short, I now owe the Belgium taxman a large sum of back tax and interests.

But my question is really this:

The demanded back tax plus years of interests and fine etc. is way more than I have in savings. But I do have a flat, and am still paying mortgage. So if the cash I have can not fill up the hole, can they take my flat (the flat is in the UK, and I live in it)? I heard under the EU law, if I can not pay back the debt, they can ask the UK tax authority to recover the debt for them under MARD (Mutual Assistance for the Recovery of Debts)
HMRC info:
http://www.hmrc.gov.uk/MANUALS/dmbmanual/DMBM560025.htm

So, you wise people here, please advice if there is anything I can do to protect my property? Many thanks.

[msp]

This is a complex situation, and you need proper advice. In general terms, your property may be at risk if the debt is sufficiently large to warrant some serious action. But creditors have been known to leave the "family home" alone, and instead put a "charging order" on it. That means that they get their money when it is eventually sold.

BTW, don't think about putting your asset(s) in someone else's name just before the sharks close in. It doesn't work unless you are mega mega rich and have slippery advisors.

[wamstax]

They could certainly make life difficult for you and it depends on the amount of the tax debt whether they would invoke the MARD priciples to put a legal charge in place to prevent you disposing of the property without settling your Euro debt.

You clearly require specialist tax advice in dealing withew this including for example if the property is jointly owned by your spouse etc and the extent of any equity in the property.

You may also have to either consider making a composition offer or seeign an insolvency practitioner

[DrCal]

Dear All,

I have a question in a simliar manner to "needluck" although my situation is smaller and hopefully less complex in comparison. I too was employed in Belgium, and have recently been asked to repay 2200 Euro in back tax to the Belgian Tax Authority.

Upon return to the UK I am now in a somewhat slightly less than lucrative finical position, therefore find it hard if not without the need to take a loan or overdraft to repay this sum, also I feel the Belgian Tax should have done their maths not penalise me for their mistake.

What is the likely outcome if I do not pay, I believe that the sum for MARD to take an interest is 1500 Euro, so I am just about in that category, but surely this is not worth their time?

Many thanks in advance for any help and support,

Regards,

DrCal

[wamstax]

I assume that you have accepted that the debt is properly calculated and due in which event the amount is sufficient to invoke the MARD procedures in the UK

[wamstax]

If a debt is under appeal or contested then it would not be appropriate for MARD until determined