Issue - meetings
Business Rates - Write Off
Meeting: 15/09/2015 - Cabinet (Item 73)
73 Business Rates - Write Off PDF 86 KB
Decision:
As detailed in the recommendation.
Minutes:
Councillor Billy Mullin introduced the report to seek approval for the write-off for business rates debts for two organisations.
The Chief Officer (Community and Enterprise) explained that report described the events that had taken place and the processes that had been undertaken to recover the business rate debts for two organisations that were no longer trading. One of the debts was significant and referred to charges for 16 empty properties located in Saltney. There was no direct financial implications for the Council or local taxpayers as business rates collected by the Council were borne by the National Collection Pool for Wales. However, as the Collection Pool was supported by Welsh Government (WG) and non-payment of rates and rates avoidance would result in less money for WG, this would have a wider impact on the Welsh taxpayer. She reassured Members that the relevant processes had been undertaken and that write-off was being recommended as a last resort.
In response to a query from Councillor Aaron Shotton, the Corporate Finance Manager confirmed that the decision complied with the Council’s Financial Procedure Rules and that he was comfortable that write-off was the only option remaining for the Council.
The Chief Officer (Community and Enterprise) confirmed that the Authority performed well in collecting business rates and details of the amount collected during the period that the debts had accrued was reported.
Councillor Kevin Jones expressed his disappointment that the organisation had taken on so many properties, had not paid the rates and had then disappeared. He felt that it was important to raise awareness that business rates were collected by the Council but were paid to Welsh Government. Councillor Derek Butler felt that the units could have been let to other businesses for employment opportunities.
RESOLVED:
That the write off of these business rate debts amounting to £486,063 for Milvus Ltd and £52,800 for Midcomb Ltd be approved.