UK to use web robots to track tax evaders

Britain’s tax authority is to begin using web robots to scout the internet for tax evaders
HM Revenue & Customs (HMRC) has announced that it will be launching new campaigns aligned against e-marketplaces, VAT defaulters and private tutors over the next year.
The campaigns will centre on the HMRC using cutting-edge tools such as “web robot” software to search the internet and find relevant information on specified companies and people.
The software will enable the department to detect more accurately taxpayers who have not paid for the right amount of tax.
Web robots will be used in tandem with the department’s ‘Connect’ computer system to boost the search for taxpayers who are trading without telling HMRC. ‘Connect’ matches the vast amount of HMRC and third-party data to detect previously invisible tax evasion.
This allows for a rapid and focused response to tax evasion, as well as the ability to uncover hidden relationships related to anomalies in taxpayer information involving such elements as bank interest, property income and other lifestyle indicators.
“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,” said Mike Wells, HMRC’s Director of Risk and Intelligence. “It will be more expensive if we come and find people, so I urge them to come forward and disclose voluntarily.” According to information from the HMRC, between 2011 to 2012, it will be conducting numerous campaigns focusing on the following areas:

-VAT rule-breakers trading above the £73,000 (US$118,128) turnover threshold but who have not registered for VAT.

-Those who provide private tuition and coaching. This addresses the risk posed by all professionals who, because of their field of expertise, are able to earn money from providing tuition and coaching – either as a main or a secondary income.

-Trades. This will build on HMRC’s plumbers’ campaign and give an opportunity to another group of tradespeople to come forward and declare unpaid tax.