Scenario 1:
Company A which is limited company has an exclusive agreement/tenancy/lease, where the payment of rent includes payment of business rates.
In accordance with the agreement, Company A will make payment of rent to the landlord and the landlord will make payment of business rates to billing authority.
The billing authority is sent the lease agreement and Company A is made liable for payment of rates but it is the landlord who actually makes the payment of business rates to you.
Company A applies for rate relief and this is retrospectively applied resulting in the account now being in credit.
This credit continues to remain on the account but before the money can be refunded, Company A goes into liquidation.
Both the landlord and the liquidator write to you requesting for the credit to be refunded to them
As a billing authority who would you refund the money to and your reason for doing so. Please quote any relevant legislation in support of your answer.
Scenario two:
Same situation as scenario one where Company A has exclusive agreement and the landlord will be making payment of business rates.
You make Company A liable for payment of rates but in this scenario no payment of business rates is received. Recovery action will need to be taken through the Magistrates Court for non -payment.
As the billing authority, who would you take recovery action against in the Magistrates court and please give your reasons for doing so. Please quote any relevant legislation in support of your answer.
Would you take recovery action against Company A who is in occupation of the hereditament or the landlord who had agreed to make payment of business rates in accordance with the lease agreement.