HMRC gets new bugging powers

People suspected of major tax fraud could have their phone calls and other correspondence placed under surveillance by HM Revenue & Customs, it has emerged.

From today (February 15th), HMRC officials have been granted a significant extension of their powers which allows them to intercept communications as part of criminal investigations, the Financial Times reports.

Such powers had previously been available only to the customs and excise department, but will now be distributed "across the board" under the Serious Crime Act.

Tax officials will have to seek permission from the home secretary to carry out bugging and other surveillance procedures.

The move was criticised by Harry Travers of the Institute of Chartered Accountants of England and Wales, who said: "Broadening the choice of powers available for HMRC to abuse does not seem to me to be a sensible legislative development."

However, last week appeal court judge Sir Paul Kennedy said that it would be "appropriate to use interception" in tax cases when "the threshold of serious crime is crossed".