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HMRC Raids & Search Operations
HM Revenue & Customs (HMRC) is responsible for investigating suspected criminal activity across the whole range of its responsibilities throughout the UK. With the recent announcement that £900million will be made available to HMRC to tackle evasion and avoidance and fund an intended five-fold increase in criminal tax prosecutions, criminal tax investigations will increase. The power to raid and search suspects and their homes and business premises with the intention of securing evidence of serious tax fraud is a powerful tool and is used in most criminal tax investigation cases.
On this page:
What typically happens on a Raid or Search Operation?
Raids or Search Operations usually happen first thing in the morning but commence at times that best secure evidence. The size of the Search Operation depends upon the size of the case and the nature of the suspected offences, but it is not uncommon for numerous simultaneous Raids to be conducted nationwide.
In most cases, the main suspected perpetrators of the fraud are arrested, their home and place of business are searched and they are taken to a police station and questioned by way of an interview under caution.
The Raid or Search Operation is often the first time that a suspect will know of the criminal tax investigation. In reality, a good deal of investigative work will have already taken place including surveillance and interviewing potential witnesses (which can often include former associates/colleagues). The evidence obtained from pre-operation enquiries is typically relied upon in the application(s) to the Courts for search warrants.
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What powers do HMRC have to search my home and place of business?
Finance Act 2007, Sections 82-86 and Schedule 23 introduced new powers, including provisions dealing with search warrants, production orders and powers of arrest. It applied Police and Criminal Evidence Act (PACE) rules to all HMRC criminal investigations. In addition, the Serious Crime Act 2007, Section 22 and Schedule 12 came into force on 6 April 2008 allowing HMRC to use its most potent powers in all its investigations into serious crime.
Search warrants are typically obtained under PACE and authorised by a Justice of the Peace. If HMRC suspects that 'Special Procedure Material' is likely to be found on the premises, the warrant will need to be authorised by a Circuit Judge. Special Procedure Material' is material acquired or created in the course of a trade, business, profession, occupation or office that is held subject to an express or implied undertaking to hold it in confidence or subject to a statutory restriction on disclosure or obligation of secrecy. The warrant will specify the terms and scope of the search, including the address being searched, the number of officers permitted, the period during which they are allowed on the property to search and the material they are authorised to seize and remove.
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What should I do if I am raided?
There are a number of key considerations you must take into account:
- Obtain specialist/legal advice without delay;
- Establish what/where the scope of the warrant permits the HMRC officers to enter, search, seize and remove;
- Ensure that the HMRC officers conform within the scope of the warrant;
- Provide the HMRC officers with reasonable assistance to undertake the search. This could include providing HMRC with computer passwords and access to secured areas. Remember, HMRC is entitled to use reasonable force to access material.
- Any documents you believe are subject to Legal Professional Privilege should be identified to HMRC, as HMRC are not permitted to remove such documents. Typically, these items are secured separately and adjudicated upon by a Judge at a later date.
- The scope of the warrant should entitle HMRC to image 'electronic' information and, if necessary, to remove IT hardware, but this needs to be confirmed. If the removal of computer equipment would be disruptive to you or your business then you should assist HMRC (who typically include computer imaging specialists in search teams to download material on site thereby preventing the need for the removal of computer equipment).
- Consider making reasonable requests for copies of documentation seized and removed, which could assist the smooth running of a business;
- Consider media management to ensure that any press coverage is not detrimental to your business or managed correctly; and
- Consider what you tell your staff, suppliers and customers given that HMRC may well intend speaking to them as part of its investigation.
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What shouldn't I do if I am raided?
- Do not lose your temper. Try to keep calm so as not to impair your judgement;
- Do not impede the search, remove or destroy material. Doing so is a criminal offence;
- Do not answer questions relating to or comment on the alleged offences under investigation without your specialist/legal advisor being present; and
- Do not agree to allow your staff to be interviewed by HMRC for the purpose of obtaining witness statements without your specialist/legal advisor being present.
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How can OneE TDI help?
Despite HMRC's target to prosecute more tax fraud cases the reality is that if you come forward and make a full voluntary unprompted disclosure (either separate to or via one of HMRC's disclosure campaigns) then you will minimise the likelihood of you being criminally investigated. Therefore, if you know or suspect that you need to disclose undeclared income, profits and/or gains to HMRC (whether they arise in the UK or offshore), OneE TDI can successfully manage the disclosure process to protect you from potential criminal investigation and prosecution. We have up-to-date knowledge of all HMRC campaigns and disclosure facilities and offer confidential, non-judgemental advice to best defend our clients. Our advice saves our clients time and money and helps reduce their potential exposure to tax, interest and penalties.
At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations work. We are former HMRC inspectors/investigators – so we know how HMRC thinks! We are constantly dealing with inspectors/investigators so we have up to date insights into current practice and policy and consistently negotiate the best possible terms for our client without the case being criminally investigated or prosecuted.
If you find yourself subject of an HMRC criminal tax investigation and a Raid you should immediately seek specialist representation to best protect your liberty, your reputation and your assets. OneE TDI works closely with the UK's leading criminal defence lawyers and we have a proven track record in defending clients under criminal tax investigation and working to secure a move in the investigation from Criminal to Civil. Our Expert Witness & Forensic service includes a thorough review of any tax fraud allegation and the examination of any tax loss claims/computations put forward by HMRC - providing alternative arguments/computations where appropriate.
Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.
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How can I contact OneE TDI?
If you would like a free, confidential, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below.
Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.
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Criminal Tax Investigations