UK tax agency using AI to help target fraud and evasion

HM Revenue and Customs (HMRC), the UK’s national tax authority, has confirmed it is using artificial intelligence to monitor the social media accounts of people suspected of tax fraud. The BBC reports that this is done only as part of criminal investigations and not for everyday taxpayers.

For readers outside the UK, HMRC is the government department responsible for collecting taxes, administering certain benefits, and enforcing compliance with tax laws. Its role is similar to the Internal Revenue Service (IRS) in the United States or the Canada Revenue Agency (CRA) in Canada.

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In a statement to the BBC, HMRC said: “Greater use of AI will enable our staff to spend less time on admin and more time helping taxpayers, as well as better target fraud and evasion to bring in more money for public services.”

The department emphasized that AI will not replace human decision-making and that its use is subject to legal oversight.

Targeting tax frauds

Chris Etherington, a partner at accountancy firm RSM UK, told the BBC: “AI could help HMRC to streamline its processes and make it easier to compile all the available information about an individual. There are of course risks with automating this and there could be cases of mistaken identity, particularly with fake or hacked social media accounts. There will clearly still need to be a human touch in the process to ensure appropriate decisions are made and all the relevant information is reviewed.”

The BBC notes that HMRC has used AI in its work for years, but its role in monitoring social media was only made public following a report in the Daily Telegraph. Officials said it is applied to social media only when a criminal investigation is under way.

The BBC reports that the use of AI is not replacing jobs in this area, with the government confirming that HMRC will be adding 5,500 compliance staff. It is also reportedly exploring other AI tools to make its services easier to use.

What do you think about tax authorities using AI to monitor social media? Let us know in the comments.

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