HMRC 'could tap phones'

Date: 8th February 2008

The use of so-called intercept evidence could help HM Revenue & Customs (HMRC) to clamp down on tax criminals, it has emerged.

According to Accountancy Age, HMRC inspectors are to be given the power to tap phones, monitor emails and use other covert techniques to keep an eye on people suspected of tax avoidance or other offences.

The use of intercept evidence has long been a controversial issue, with advocates claiming that it can be invaluable in bringing terrorists and other serious criminals to justice, while critics say that it involves an infringement of personal liberties.

It is understood that tax inspectors will be granted the new powers earlier than expected, rather than waiting for the next finance bill.

"HMRC believes that where the threshold of serious crime is crossed and it is necessary and proportionate to do so, it is appropriate to use interception," said Sir Paul Kennedy, an appeal court judge who has delivered a report on the use of wire-tapping evidence.

Tax experts have recently criticised HMRC for revealing that it will not keep records of people making claims for Entrepeneurs' relief under the new capital gains tax regime.