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Maidstone Borough Council wipes £273,273 of overdue business rates owed by companies including Internacionale, formerly in The Mall

Almost £300,000 of outstanding debt has been written off by Maidstone Borough Council this year.

The decision was made to wipe the overdue business rates of 17 companies, amounting to £273,273, as the authority had little prospect of recovering the money.

More than a quarter of the total amount erased was totted up by people who could not be traced, one of whom owed £53,718 from the past two financial years.

Maidstone Borough Council has wiped off the debts of 17 companies amounting to £273,273
Maidstone Borough Council has wiped off the debts of 17 companies amounting to £273,273

In the case of individual debt the council cannot name those involved for legal reasons.

Council leader Annabelle Blackmore said: “The council collects more than £57 million in business rates from 4,682 rate payers, with an average collection rate of 98%. It actively encourages businesses to contact it if they are experiencing difficulties and to agree arrangements for payment.”

She added that robust action was taken against those who failed to pay rates – including legal proceedings and the possibility of prison sentences for individuals failing to comply – and writing off debt was something which was only done if all options had been exhausted.

Among the companies to owe the largest sums was The Mall’s cut-price clothes retailer, Internacionale Retail Ltd. The company hadn’t paid £35,866 and went into administration in February.

The town’s riverfront restaurant, The Barge, which went into liquidation last year and has since been reopened as Embankments, left the council £12,059 out of pocket.

Certain companies and individuals owed business rates from multiple years. A council spokesman confirmed court action was due if rates hadn’t been paid within four to five months of the end of each year but that commonly companies did not respond to correspondence and a judgement was then taken on whether proceedings to wind up a company were worth it financially and practically.

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