A consultation document setting out how the powers and
accompanying safeguards used in the investigation of tax crime
could be modernised was published by HMRC today.
HMRC is responsible for investigating suspected criminal
activity across the whole range of its responsibilities, including
investigating tax credit fraud and VAT fraud, which can involve
organised crime.
HMRC is seeking views on applying the relevant provisions in the
Police and Criminal Evidence Act (PACE) across all its activities.
Currently, those powers and their associated safeguards are only
available for specific taxes and duties. Having the same law apply
across the board will be clearer for those under investigation and
will increase the effectiveness of HMRC's investigations, argues
the authority.
PACE doesn't apply in Scotland, and views are also sought on the
provisions that would provide an effective and fully integrated
regime that is appropriate for Scotland's legal system.
Currently HMRC relies on provisions inherited from its
predecessor Departments – the Inland Revenue and HM Customs and
Excise. These differ which means that HMRC has no powers of arrest
and detention for ex-Revenue matters. This "leads to a number of
difficulties," says HMRC, including problems obtaining police
support. It already has powers of arrest for offences that would
previously have been within HMCE's remit.
Arranging for a constable to take a suspect's fingerprints can
cause delays and "can raise logistical and security issues," adds
HMRC in its consultation. "If appropriately trained officers of
HMRC were allowed to take fingerprints this would establish the
identity of detainees and prints at crime scenes more quickly
without using police resources. It would also help HMRC to take
better advantage of new technology which allows fingerprints to be
identified quickly."
Modernising these provisions would give trained officers
harmonised powers to apply for search warrants and production
orders, and powers of arrest across all taxes, all of which would
be subject to the important safeguards which attach to criminal
investigations generally, says HMRC.
HMRC anticipates that, in light of responses to this
consultation, specific proposals will be worked up in detail, on
which there will be a further opportunity to comment.
