HMRC has released an interactive map highlighting the top tax fraud hotspots across the UK in a bid to highlight the most effective campaigns and illustrate where in the country evasion is at its worst, using the original investigation names
The interactive online map shows the locations where it has made successful prosecutions for a range of tax fraud and other criminal offences.
The map does not identify the individuals concerned, although each case is headed with a title which is the original name for the HMRC investigation. In the case of the Aberdeen conviction, for example, this is ‘Red Grouse’, while the St Austell one is ‘Oboe’. Others include ‘Snare’, ‘Tank Engine’, ‘Creosote 12’ , ‘Megalopolis 12’, and ‘ Grike 10’.
The case labelled ‘Moonshot’ and dated April 2014 was a VAT repayment fraud perpetrated by a Chelmsford accountant who used friends and colleagues to set up VAT registered companies for the purpose of defrauding HMRC of £340,000 over a two and a half year period.
The HMRC note states he and his associates were convicted and he was sentenced to four years and three months. Custodial sentences over 11 years in total have been imposed on four of the defendants, with one awaiting sentence.
The map shows convictions resulting in jail sentences since April 2013. Each one is pinpointed by a blue marker, and clicking on that location produces outline details of the conviction including the amount involved, date and the sentence received.
The most northerly case on the map is in Aberdeen, and relates to a July 2013 VAT-related investigation involving around £64,118 in revenue that resulted in a custodial sentence of eight months for one individual.
The most southerly case is located in St Austell and is a case of a tax agent operating a self assessment fraud of between £2m and £10m, which went to court in April 2014. The explanation says he received total sentences of 89 years for 256 offences and will serve seven years as the sentences are concurrent.
HMRC says it plans to add more criminal case information on a monthly basis, but for ‘security, legal and other reasons’, will not be publishing all the details of all successful criminal prosecutions. As a result, the map does not display or reflect all tax-related offences within the UK. HMRC says it will be expanded in the future to include non-custodial sentences since April 2013.
A second map illustrates the locations of HMRC taskforces targeting specific trades and professions since they were introduced in 2011. This is colour coded to show the specific campaign, such as restaurants or hairdressers, but does not include details of the total tax take from each programme. David Gauke, Financial Secretary to the Treasury, said: HMRC’s investigators are catching tax cheats in every corner of the country and we want people to be able to see the outcome of this enforcement action.
‘HMRC’s new online enforcement map shows tax cheats that when they are caught they can face hefty prison sentences. It is yet another example of how the government is making HMRC’s work more transparent.’
HMRC’s chief executive, Lin Homer, said: ‘HMRC is prosecuting more tax cheats every year and targeting more trades and professions where we have identified that tax revenue is at risk. This map shows the scale of our criminal investigation operations, so tax cheats should be seriously worried that HMRC is coming for them next.’
The site is being launched as a pilot and HMRC says it will be adding further information and seeking customer feedback with a view to making improvements.
The map can be viewed at http://hmrcdigitalpilots.com