Taxman using robots to catch tax evaders!

Taxman using robots to catch tax evaders! from Lynam Tax Ltd

By: Lynam Tax Ltd  29/06/2011
Keywords: Tax Accountancy

Cyber Taxmen have developed new 21st century hi-tech forensic computers tools to catch tax evaders. Using these new “Tomorrow’s World” techniques, HM Revenue & Customs (HMRC) will run 3 specific campaigns over the coming year, targeting E-traders, tutors and VAT defaulters.

The taxmen will use cutting-edge computer tools, like “web robot” software.  This works like a cyber drone, searching the internet about specified people and companies, to pinpoint more accurately those who haven’t paid the right tax.  The “web robot” will link to HMRC’s own “Connect” computer system to find people who are trading without telling HMRC.  Connect also matches vast amounts of HMRC and third-party data: looking at things such as bank interest, property income and lifestyle indicators; and then homing in on unexplained inconsistencies.

The first three groups to be crawled over are:

  • Private tutors and coaches, whether full or part time, will be in the cross hairs: e.g. fitness, dance, and lifestyle coaches, through to national curriculum subject tutors and others.
  • The e-marketplaces project will cover people using online marketplaces (like Gumtree and e-bay) to buy and sell goods as a trade or business, and who don’t pay the right tax.
  • VAT rule-breakers trading above the £73,000 turnover threshold but who have not registered for VAT will be targeted from the summer.

HMRC’s Director of Risk and Intelligence, said:  “We will use the information we gather to pursue people who choose not to use the opportunities we provide for them to put their affairs in order on the best possible terms.”

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Keywords: Tax Accountancy