A probe into how well HMRC complied with its legal disclosure obligations under the Criminal Procedure and Investigations Act 1996 (CPIA) - as amended by the Criminal Justice Act 2003 (CJA) - has led to a raft of key recommendations.
The investigation by HM Inspectorate of Constabulary (HMIC), which took place between October 2012 and January 2013, included an assessment of HMRC's leadership, governance, systems and processes in place to ensure compliance with the legislation and staff training.
It revealed several issues of concern around leadership and governance, including a lack of understanding among staff as to what the Disclosure Coordination Unit (DCU) was responsible for doing.
This was despite HMRC investing 'heavily in putting structures and processes in place to counter the reputational risk and loss of revenue associated with unsuccessful prosecutions directly linked to disclosure breaches'.
Among the seven most urgent recommendations was the need for more training and guidance about 'how learning about disclosure is captured and shared across criminal investigation and the wider department'.
Another area for improvement was for 'greater management oversight and governance, particularly by the officer in charge, to ensure that disclosure plans and consolidation reports are completed in accordance with the enforcement handbook'.
The report also called for HMRC to 'enhance the status' of the disclosure officer, 'which is currently insufficiently recognised and valued'.
It also urged the disclosure coordination unit (DCU) 'to raise awareness levels of its function, responsibilities, capabilities and role in disseminating organisational learning'.
However, HMIC found that there were adequate systems in place to ensure effective governance such as the Disclosure Steering Group (DSG), which 'provides direction and control across the entire department'.
It found that HMRC‟s enforcement and compliance (E&C) unit 'has a well-established and resourced training structure' with a 'designated portfolio holder for disclosure training'.
HMIC also recommended more training and guidance on the way learning about disclosure is captured and shared across criminal investigations and the wider department.
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