Sunday 18 March 2012

Householders dodging £1.3m in council tax


First Published by: Kent and Sussex Courier

ALMOST £1.3million of council tax due to be collected in Tunbridge Wells during the past five year’s remains unpaid.

More than £485,000 in council tax for 2010/11 alone has so far been dodged by householders.
Tunbridge Wells Borough Council issues around 2,500 court summonses each year in a bid to claw back the debt.

Figures show the council has spent £1,038,319 since 2006/2007 pursuing council tax evaders – costs it said it could eventually recover from debtors. Its efforts since 2006/2007 until April last year have recouped £3,507,514 but the cost of recovery was £1,038,319 – making an overall gain of £2,469,195.

Cabinet member responsible for Council Tax, councillor John Cunningham, said: "We have a rigorous recovery programme for collection of outstanding council tax. We actively pursue those who won't pay. We are successful. Tunbridge Wells is in the top quartile for collection in the country."

The council said its "biggest problem" was not having access to the records of organisations such as HM Revenue and Customs and the Department for Work and Pensions to track people who had absconded.

Mr Cunningham said writing off debts was a "last resort" only taken when someone could not be traced, and we have many people who fall into this area. "All recovery methods have to be fully attempted before any write-offs. This happens only where we have been unable to trace a debtor, of if a debtor has been made bankrupt and there will be no distribution to creditors because of insufficient funds," he said.

He said around 25 per cent of council tax debt was recovered after five years. The council issues reminders and final notices to non-payers. If this fails, it issues summonses to a magistrates' court followed by a liability order through the courts. The bailiffs, committal proceeding and charging orders can follow.

Figures show that of the £1,007,560 owed in 2006/2007, more than 50 per cent has been collected by the council.

Asked how long the council would continue to pursue a council tax cheat, Mr Cunningham said: "Indefinitely, no matter what the cost. If an amount is owing, then we will seek to recover the amount by the means available to us. It is important to note that we have to distinguish between the 'can't pay' and 'won't pay' taxpayers."

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