How data drives HMRC’s tax investigation campaigns

The spotlight has been shining on HMRC’s need to recoup tax monies it is owed especially in the light of a growing UK budget deficit and an ever-more challenging corporate environment.

In this evolving landscape risk-based profiling has become a key strategy to support HMRC’s operations and one that is allowing the department to harnesses the power of large databases from diverse sources to target tax investigation cases in a manner more likely to yield results.

Just a couple of decades ago the concept of risk-based profiling was in its infancy at HMRC. However the proliferation of data sources has transformed it into a potent tool for targeted campaigns. With inputs from financial institutions governmental agencies international entities and even social media platforms HMRC is able to paint a more detailed portrait of specific taxpayer groups enabling it...