DMBM560205 | DMBM560205 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (OECD and DTA): about the agreement

Some content of this manual is being considered for archiving. If there is content you use regularly, please email [email protected] to let us know as soon as possible.

What is MARD?

MARD (Mutual Assistance in the Recovery of Debt) is an arrangement which allows a relevant authority in another country to ask HMRC for assistance in either:

obtaining information
serving legal documents
recovering a tax or duty debt

where the defaulting taxpayer is living in, or has assets in, the UK. There are a number of different MARD arrangements in place, but all are reciprocal.

This guidance refers only to the recovery arrangements made with countries under the Council of Europe (CoE) / Organisation for Economic Co-Operation and Development Convention (OECD) and Double Taxation Agreements (DTA) for tax and duty debts. For information on the MARD arrangements with other members of the EU see DMBM560010. For information on the MARD arrangements under the EU Social Security Regulation see DMBM560500.

The Law and Regulations

There are two routes:

Council of Europe (CoE) / Organisation for Economic Co-Operation and Development (OECD) Convention
a bilateral arrangement, typically an Article within a Double Taxation Agreement

Legislation that applies to recovery of debts

HMRC powers to recover taxes and duties in the UK when requested to do so by a country under either of these routes are contained in the following legislation:

Section 173 Finance Act 2006

SI 3507/07 ‘The Recovery of Foreign Taxes Regulations 2007’

SI 794/10 ‘The Recovery of Foreign Taxes (Amendment) Regulations 2010’.

Council of Europe (CoE) / Organisation for Economic Co-Operation and Development (OECD) Convention

The CoE / OECD Convention on Mutual Administrative Assistance in Tax Matters sets out the basis for the agreement.

The Convention is given effect in UK law by SI 2126/07 ‘The International Mutual Administrative Assistance in Tax Matters Order 2007’ and SI1079/11 ‘The International Mutual Administrative Assistance in Tax Matters Order 2011’.

It came into force on 1 May 2008.

Double Taxation Agreements

The documents which set up the basis for the arrangement are typically either:

a Double Taxation Agreement (DTA) between the UK and another country; or
a Protocol amending the DTA to include debt recovery provisions if these were not covered by the DTA when it was first signed.

The DTA and any protocol are given effect in UK law by means of a Statutory Instrument.

Memorandum of Understanding / Mode of Application

In addition, the operational detail of how assistance will be given can be agreed and set out in the form of a Memorandum of Understanding (MOU) or Mode of Application (MOA), although this is not a legal requirement.

Types of Requests

There are 4 different types of requests

Data protection

Information exchanged under these agreements in any form is covered by the obligation of official secrecy and enjoys the same protection extended to similar information under the national law of the requested country.

You can only disclose information received to:

the person mentioned in the request for assistance
those persons and authorities responsible for the recovery of the claims, and solely for that purpose; or
the judicial authorities dealing with matters concerning the recovery of claims.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)