Revenue - Tax "Will not be collected" long term meaning?

share_bear

Hi,

When my father received his pension with an allowance for my mother, he declared it to revenue correctly. However, revenue did not apply that information forward to the subsequent years, and following a struggle they did apply it, but with an incorrect tax credit. They subsequently sent out standard form letters saying that based on direct DSP information, it had been corrected by them - but it hadn't and the employer didn't apply updated tax credit certificates etc.

My father died recently and they sent my mother demands for underpayment of tax, 7k reduced to 5 by an overpayment in the year of my fathers death.

They have now said that because of my mothers circumstances (medical issues + lack of significant income), the underpayment for 3 years "will not be collected".

But in reality, what does this mean? Is it full and final settlement?

In the case of businesses, I have read that write-offs can be collected when circumstances changes. in the case of a private individual, could they seek this amount with interest - upon sale of the family home or upon her death?

Infact, is "will not be collected" better than a "write-off". Will not be collected ever no matter what?

Would it be stronger to propose a full and final settlement based on a nominal amount?

Anyone know for sure?

Thanks

share_bear

Is this so unique a circumstance that nobody knows?

barneystinson

The tax has most likely been written out, due to her inability to pay it. They won't write it off.

It stays on record, and if her circumstances change or she dies leaving an estate, it may be collected.

share_bear

barneystinson wrote: »

The tax has most likely been written out, due to her inability to pay it. They won't write it off.

It stays on record, and if her circumstances change or she dies leaving an estate, it may be collected.

Does that mean interest would be applied?

Are they deliberately screwing peoples tax up as a sort of investment by way of punitive interest?

Would it be best to ask for a settlement for a nominal amount?

Kristopherus

share_bear wrote: »

Does that mean interest would be applied?

Are they deliberately screwing peoples tax up as a sort of investment by way of punitive interest?

Would it be best to ask for a settlement for a nominal amount?

"Will not be collected" means exactly that. If it meant anything else, they would have added something like "at this time" or "from your estate".

You have nothing to worry about.

share_bear

Kristopherus wrote: »

"Will not be collected" means exactly that. If it meant anything else, they would have added something like "at this time" or "from your estate".

You have nothing to worry about.

Well they added...due to her circumstances.

If she rented a room out, or dies, her present circumstances would no longer be her circumstances.

If I could get them to use the phrase "written off" , would that kill it for good or could it come back?

Should I ask for a settlement for a nominal amount instead?

share_bear

What is the difference between "written off" and " written OUT" please?

barneystinson

share_bear wrote: »

What is the difference between "written off" and " written OUT" please?

Written off means what you'd expect it to.

Written out means it's still on record as due but will not be collected, unless something happens to indicate it has become collectable.

So as I said previously, it's a write out and not a write off that is happening here. For a relatively small amount, it may be unlikely they'll ever pursue it again.

Mr. Incognito

Revenue do not have the power to write off tax which is collected on foot of legislation.

They do have power to refrain from collecting it.

It's most unusual but it does happen.

Just keep your mouth shut and say thank you