Ten ways HMRC is catching tax cheats
By , 7 Jul 17
Recent high-profile wins against tax evaders prove that when it comes to cracking down on tax dodgers, HMRC is serious about stepping up not only its surveillance but also about finding innovative ways of catching out tax cheats. Here are some the methods the UK tax office employs.
Since 2010, HMRC has run a computer program called “Connect” which sifts through vast quantities of information — more even than the data stored in the British Library — in its hunt for underpaid tax. It ploughs often unrelated information to detect otherwise invisible networks of relationships.
This includes details of bank interest, credit card data and Land Registry reports.
In one case, Connect identified a string of credit card transactions associated with a private London residence worth millions of pounds, which was owned outright by someone with no tax history and a state pension as their only source of visible income.
A routine internet search found advertisements for an escort agency at the address and after a lengthy HMRC investigation the owner admitted making more than £100,000 a year over the past six years.
HMRC’s next target will be to force apps and platforms such as Apple, Amazon and Airbnb to hand over data — including names and addresses of sellers and advertisers — that would help it identify tax-evading businesses.
Tags: Beneficial Ownership | CRS | HMRC | Tax Evasion
