What is the Mutual Assistance Recovery Directive (MARD)?

The Mutual Assistance Recovery Directive (MARD) is a European Union framework that allows tax authorities across member states to recover debts owed in other countries. Although the UK has left the EU, elements of MARD still influence cross-border tax enforcement. Under MARD, HMRC can pursue UK companies or individuals for tax debts owed in EU countries, and EU authorities can request HMRC’s assistance in collecting UK tax debts. This means directors with international operations cannot assume tax debts abroad can be ignored. For businesses, MARD highlights the importance of maintaining compliance across jurisdictions and seeking advice on international tax matters. While Brexit has altered the UK’s direct participation, cross-border tax enforcement remains a reality, and directors must be prepared to deal with claims from foreign tax authorities.