HMRC’s increased tax investigation activity

HMRC’s thirst for data is seemingly insatiable. That data comes from a surprising number of sources and in considerable measure.

Domestically HMRC’s ‘Connect’ software draws in large amounts of data which is then assimilated into its other intelligence to draw a picture of a taxpayer’s profile to be checked against their declared income and gains. The software connects to among others Companies House Land Registry Department for Work and Pensions Border Force banks insurance companies reported legal cases internet newspapers and investigative journalist media. Taking that last source the International Consortium of Investigative Journalists (ICIJ) published the Panama Papers and later the Pandora Papers to reveal what it described as revealing the hidden owners of offshore companies secret bank accounts mansions yachts private jets and artworks. It is commonly understood that HMRC used that...