My brother owes €25,000 in tax arrears from failed business, what will tax office do?

the tax office wants him to pay €10,000 upfront and following €1000 per month until its paid off, the problem is that he only has a regular job now and can only afford to pay €100 per week after paying his mortgage and bills, will they order him to sell his house to pay it off? that would be his worst nightmare!

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Is this for the UK? If so, how come it is in Euros? I’m answering for the UK.
There are four options open to tax office, bearing in mind the sum owed is too massive to take to Magistrates' Court. First, they will look at distraint. Does he have assets to cover the debt plus interest and distraint charges? He can’t just say any goods belong to the wife and/or children. Purchases/ownership will have to be proven with receipts and documentation.
If that is no good, the next option will be County Court. A County Court judgement will be made, may be even for the amount he is currently offering. But if he defaults, he could face gaol as being in contempt of Court, although that is a last resort, and he would have to face a lot of Court appearances before that. If he becomes employed, a garnishee order could be put in place, so that Court payments are deducted before he gets wages.
Then they will look at bankruptcy. That’s when he could lose the home. Doubt if he would be ordered to sell it, the Official Receiver would do it for him automatically, for whatever price he can get. Your brother's assets will be taken, he will not be able to operate a current bank account, and he will be very restricted as to what he can do. He should be careful about the advice on selling the house to a family member. If it is regarded that has happened to avoid paying his debts, there could be nasty repercussions. I don't know exactly what would happen legally, I'm not a lawyer, but in inheritance tax scams the value of the property can be taken back into the estate.
I don't think the fourth option is very likely. If he has no assets at all, tax could be held in abeyance. The debt doesn't go away, for the moment he isn't pressurized into making settlement, but if, in the future, he comes into money, or has reasonable earnings, he will be asked to pay, however long ago the debt arose. There is no statute of limitations. He wouldn't get any repayment of tax if ever overpaid, it would be set off against the debt.
Your brother should prepare a statement of his current incomings and outgoings, and make a reasonable offer to HMRC. If they accept it, the arrangement may be revised in the future if his circumstances change, and interest (at a commercial rate) continues to accrue until all the debt is paid. He can point out that, with his offer, the capital will be paid off in less than five years, slightly over that including interest (how long will depend of amount of interest charged). HMRC will tell him he has to have had the income for the tax to be due, and they will want to know what he did with that income. It is expected the self-employed should make provision to pay their tax, and not use the money for other purposes.

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my wife is going through the same thing, the tax office will be very unhelpful however keep offering the £100 per week, they wont accept it and eventually they will send someone round to do 'distraint” against your brother, which basically means they will sum up how much stuff you have in your house. firstly, make sure your brother tells them that everything is jointly owned by his partner, then they cant touch it (assuming he has a girl/boyfriend/wife etc)
secondly, the person they send will want a swift resolution and will ask your brother for a breakdown of earnings and outgoings, just make sure that the outgoings leave that £100 and they will accept that from you, once it gets to that stage they’ll generally accept anything.
however, as it is such a massive amount there’s also the possibility that they will insist on bankruptcy, but that can be dealt with if and when it happens, and to be frank with such a large debt, it might not be the worse thing that could happen.

hope that helps

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My dad was in a similar situation ten years ago. It became clear the the taxman was going to take all of his assets, the biggest, being the house, which he’d paid for. To get round this, My father sold me his half of the home and my mother gifted me her half. It meant that I had to take out a mortgage for half of the house,but I considered it to be a good investment as the house would have been lost otherwise. The taxman then cleaned out my father of all his funds and he declared himself bankrupt, which meant that he had no access to any loans or credit for three years. If he were to get any additional monies, EG. lottery wins, inheritances, he was liable to give them straight to the taxman until his full debt had been paid. I would advise you to seek proper legal advice on this one. We found a great solicitor who walked us through the “minefield” of legallities and we now still have our family home, the debt is paid and the whole matter is behind us. Don't let your brother just sit on this, hoping that it will sort itself out, he needs to get proffessional help as soon as possible. Good luck…

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they’ll pass the debt to bailiffs and they’ll tae any belongings he owns car ,tv you name it they will take it and sell it for a quarter it is worth leaving still more debt if he has wife he should pass it all over to her and declare himself bankcrupt saying he is sleeping on your settee , will cost him about 600 but his life will be better,goodluck it is only way as they have the ability to tax your wage however they see fit!!

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Quick, see solicitor and file for bankruptcy, don't wait
do it NOW //////

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2 points yay thank you so much. god bless and have a great day!!! =]