Business Rates avoidance discussion paper

Further to our earlier post about the business rates avoidance discussion paper we have written to The Department of Communities and Local Government:

Surely the terms of reference should bring into consideration whether or not ratepayers who are claiming reliefs and exemptions are deliberately keeping property empty? We have not seen this to be the case. We see ratepayers simply using available reliefs. To call these actions contrived and illegal is emotive and unnecessary language. By definition, no ratepayer can be illegally ‘avoiding paying the business rates that are properly due’ as this ignores the fact that anyone with an exemption has won it legally. This is certainly not tax evasion. It is not even avoidance – it is simply tax planning and the ratepayer’s right to undertake such activity has recently been upheld by the Courts.

The tone of the discussion document is such that many honest ratepayers may opt to lay low and not make representations. I would therefore expect the consultation to be loaded in terms of response numbers in favour of Billing Authorities and public bodies.

Billing Authorities should certainly not be given the power to determine ratepayer motives without a satisfactory dispute resolution process. The current recourse of withholding payment and referral to Magistrates Court is not compatible with such extension of powers.