HMRC made 18,464 requests to access communications data including phone records and web browsing histories to aid its criminal investigations in 2019, according to the latest Annual report of the Investigatory Powers Commissioner, a 60% increase from the 11,513 requests made in 2010.
Law firm RPC notes that the majority of applications to acquire communications data are for the prevention and detection of serious crime, including tax evasion, and that HMRC may consider requesting phone records from telecoms networks as part of investigations into suspected furlough fraud. As RPC points out: ‘HMRC could examine the phone records of an employer to determine whether or not they have been making phone calls to an employee during the period when they were supposedly on furlough. A high number of calls might indicate the employee was actually working and the furlough claims were fraudulent.’
Adam Craggs, partner and head of tax at RPC, said: ‘Most taxpayers are unaware of the extensive investigative powers which HMRC has at its disposal and it will not hesitate to use these powers if it suspects fraud. Digital data is increasingly important in the detection of fraud, but it is critical that HMRC takes care to ensure that the correct legislative basis is used in its fight against fraud. HMRC must not misuse its investigatory powers and ensure that only lawful, necessary and proportionate applications for communications data are made to the OCDA (Office for Communications Data Authorisations).’
Earlier on during the covid pandemic, the CIOT produced guidance for members on how to advise clients which have instructed their furloughed employees to continue working, and action to take where clients were fully aware of the rules and sought to take unfair advantage of government support.
HMRC made 18,464 requests to access communications data including phone records and web browsing histories to aid its criminal investigations in 2019, according to the latest Annual report of the Investigatory Powers Commissioner, a 60% increase from the 11,513 requests made in 2010.
Law firm RPC notes that the majority of applications to acquire communications data are for the prevention and detection of serious crime, including tax evasion, and that HMRC may consider requesting phone records from telecoms networks as part of investigations into suspected furlough fraud. As RPC points out: ‘HMRC could examine the phone records of an employer to determine whether or not they have been making phone calls to an employee during the period when they were supposedly on furlough. A high number of calls might indicate the employee was actually working and the furlough claims were fraudulent.’
Adam Craggs, partner and head of tax at RPC, said: ‘Most taxpayers are unaware of the extensive investigative powers which HMRC has at its disposal and it will not hesitate to use these powers if it suspects fraud. Digital data is increasingly important in the detection of fraud, but it is critical that HMRC takes care to ensure that the correct legislative basis is used in its fight against fraud. HMRC must not misuse its investigatory powers and ensure that only lawful, necessary and proportionate applications for communications data are made to the OCDA (Office for Communications Data Authorisations).’
Earlier on during the covid pandemic, the CIOT produced guidance for members on how to advise clients which have instructed their furloughed employees to continue working, and action to take where clients were fully aware of the rules and sought to take unfair advantage of government support.
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