Arrests made by HMRC fall to five-year low

The number of arrests of taxpayers made by HMRC for suspected tax evasion has fallen to a five-year low of 782 in the past year says law firm RPC. This represents an 11% reduction from the 877 arrests made in 2017-18. 

The lower number of arrests may be because HMRC is taking a less aggressive approach after being hit with a number of ‘wrongful arrest’ claims brought by taxpayers.

Adam Craggs partner at RPC said: ‘It is to be hoped that the fall in HMRC arrests is as a consequence of it having a better understanding of its power of arrest and when it is appropriate to exercise that power. Getting it wrong can be costly for HMRC.’

Parliament has provided that some conditions must be satisfied for an arrest to be lawful. Typically a taxpayer who is under investigation for tax evasion will agree to attend a...