HMRC carries
out fewer dawn raids
The number of
dawn raids carried out by HMRC on individuals and businesses dropped last year,
according to data published by law firm Pinsent Masons.
HMRC raided
1,082 homes and businesses in 2018/19 as part of criminal investigations into
tax evasion. However, the number of unannounced visits was down from the 1,482
recorded in 2017/18.
The number of
raids is falling as the tax authority has access to more targeted information,
according to Pinsent Masons. The law firm said that HMRC has gained ‘unprecedented
access’ to data on taxpayers in recent years, which has allowed it to target
its raids more effectively.
HMRC now
receives annual data from over 100 tax authorities worldwide through the Common
Reporting Standard. It can also use production orders and a range of other
powers to require accountants and banks to hand over documents.
Commenting on
the data, Andrew Sackey, Partner at Pinsent Masons, said: ‘These days, if HMRC
has taken the decision that it is necessary to raid a property, they are likely
to already be armed with an abundance of data from multiple sources that will
allow them to narrow the target of their search.
‘Escaping the
tax authority’s net is harder than it has ever been and the Fraud Investigation
Service is already making repeated use of the new corporate criminal offence
which criminalises companies for failing to prevent their staff from
facilitating others to commit a tax fraud, even if the companies were entirely
unaware of it.’