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Processing Manual Follow-up (MFU) tax activities for debts raised for arrears payments 107-19061202

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This document outlines information on processing Manual Follow-ups (MFU) tax activities for debt/s raised for an arrears payment.

Calculation of arrears payment

The tax system calculations are based on receipt of payment within a financial year. Arrears payments are reported on the payment summary in the year in which they were paid.

If arrears will be recovered, the debt is raised for the actual date the arrears payment was received.

Coronavirus Supplement (CVS) paid in a different financial year

CVS should be treated as an 'arrears' payment for Tax MFU purposes, when it is paid in one financial year, but represents entitlement for a previous financial year. These payments may generate a MFU tax activity that displays a negative CVS amount on the payment summary for a different financial year.

For example, customer is entitled to CVS for the period ending 12 May 2021, however the payment was not issued to the customer until 1 August 2021.

Action MFU tax activities

The MFU tax activity:

  • flags that the payment summary will not issue, and
  • must be actioned to:
    • correct the negative amount, and
    • issue the payment summary to the customer

Payment Assurance Operations (PAO) Debt Staff will:

  • investigate the errors
  • correct the debt component amounts in the customer's record
  • determine when an MFU tax activity must be reassigned to a non-Debt Staff team for corrective action, and
  • send a TZSMFU Referral Fast Note with action required

MFU tax activities that do not require access to the 'Change' function on the Tax Payment Summary (TXGS) screen will be reallocated.

Processing Manual Follow-up (MFU) tax activities for debt processing

Processing Manual Follow-up (MFU) tax activities for incorrect component amount entries