Bankruptcy and recovery of ctax

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    Anonymous
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    Hi, saw this on Moneysavingexpert, thought I’d copy it here.

    Hope you dont mind.

    [quote:9870dda2a2]There has been a recent court case that backs up the fact that if a final bill or liability order has been issued in the current year then the whole current year balance goes in t0 the BR…………

    Quote: council tax is calculated on a daily basis, what is due up to date of br, will be included. You will need to arrange with the council a payment plan for the balance of the financial year. It depends whether the council tax has become due in full – has a Reminder not been paid within 7 days, a Summons or final Notice issue or a Liability Order granted ? If so then the balance should be included in the bankruptcy and not apportioned . Council’s have been apportioning the balance but it has been confirmed quite recently that if action has led to the full sum being due, as above, the full amount is included in the bankruptcy as a debt and the council should not apportion it in these cases. From a document regarding a recent case in which the issue was discussed. Quote: (Mohammed) v Southwark LBC (QBD) 2009 Southwark obtained a liability order against The council had apportioned the council tax (CT) account up to the date of the bankruptcy order and proved that sum in the bankruptcy, thus seeking to collect the balance from Mr Mohammed. Miss Andrews QC held that, at the date of the bankruptcy order, Mr Mohammed was already liable for the full amount of CT for that financial year by reason of non-payment, the issue of a reminder notice under regulation 23 to Council Tax (Administration and Enforcement) Regulations 1992 SI (1992/613) and the failure to pay the arrears within seven days thereafter. While liability was ultimately calculated on a daily basis, liability to pay was based on the year to 31 March and liability to pay was in advance by instalments. Re Nolton Business Centres Ltd (Eliades v The Common Council of the City of London) (Ch.D) 1996, Re Toshoku Finance (UK) Plc (HL) 2002, Trident Fashions plc; Exeter City Council v Bairstow and others (ChD) 2007 and now R (Mohammed) v Southwark LBC (QBD) 2009 are all consistent in looking at current indebtedness, when amounts become due and emphasising that no apportionment on the date of entering insolvency.

    So, you can now quote ; R (Mohammed) v Southwark LBC 2009 if you have had a final notice and have failed to pay within 7 days as the caselaw for the full years c/tax going in to BR.[/quote:9870dda2a2]

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