HMRC data gunning for tax cheats

HM Revenue & Customs is turning to classic data analysis techniques – drilling deep into complex offshore structures – as it steps up its fight against tax evasion following a leak of highly sensitive financial information.
The government organisation is working with officials from the US and Australia on the project, covering about 400GB of data, which it has described as a key “weapon in HMRC’s arsenal”.
The data cache has been leaked by bank insiders and  includes 260GB of financial records leaked through the International Consortium of Investigative Journalists.
HMRC said that early results show the use of companies and trusts in a number of global territories including Singapore, the British Virgin Islands, the Cayman Islands, and the Cook Islands.
Information that is shared with other tax administrations is also incorporated within the dataset, as tax administrations launch a global fight against tax evasion.
HMRC has identified over 100 people who benefit from these structures and it said that a number of those individuals are already under investigation for offshore tax evasion.
In addition, more than 200 UK accountants, lawyers and others who advise on setting up these structures are to be investigated.
“UK residents who use these offshore structures should review their taxation arrangements, and seek advice if necessary, to ensure they are compliant with UK tax law. HMRC encourages voluntary compliance and early disclosure of tax irregularities. Failure to do so may result in a criminal prosecution or significant financial penalties and the possibility of their identity being published,” HMRC said.
“The government has invested hundreds of millions of pounds to fund the fight against tax evasion, both at home and abroad. This data is another weapon in HMRC’s arsenal.”