HMRC enlists internet bots in tax evasion battle

HM Revenue & Customs has announced plans to use tools such as 'web robot' software to find information about specified people and companies in the fight against tax evasion.

HM Revenue & Customs has said it plans to use web bots to collate information on suspected tax evaders. Photo credit: jam_90s on Flickr

The technology could be used with the department's Connect computer system to find people who are trading without telling it.

Web robots, otherwise known as internet bots, are applications that run automated tasks over the internet and can analyse and file information from web servers.

Connect alerts HM Revenue & Customs (HMRC) to previously invisible tax evasion by matching a vast amount of HMRC and third-party data, and can uncover anomalies between such elements as bank interest, property income and lifestyle indicators.

A spokesman told GGC that HMRC will use the software to look on services such as Google and eBay to identify traders, cross-referencing it against its own systems.

"For example, it will see if Mr Smith's sale of mobile phones is a trade," he said. "If, when it looks back into our systems and finds that Mr Smith works at a supermarket and there is no mention of online trading, the compliance staff will contact him.

"It's about catching moonlighters. We want to let these people know that we are on to them," he added.

Before designing and launching the campaigns, the department will seek input from interested parties.

HMRC announced a campaign in May targeting VAT rule-breakers trading above the £73,000-turnover threshold but who have not registered for the tax.

This story originally appeared on Guardian Government Computing.