Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps HMRC takes when it has been notified by a company director that their identity has been used fraudulently by impersonators.

HMRC has a strong track record in tackling avoidance, fraud and evasion and non-compliance in the system. Since 2010, HMRC compliance activity has brought in more than £175 billion which would otherwise have gone unpaid.

HMRC take all reports of non-compliance with the tax system seriously, including identity hijacking, and will investigate fully any allegations of wrongdoing brought to its attention.

Where there is suspected potential tax fraud, HMRC has the powers and capability to criminally investigate, and will not hesitate to do so. HMRC regularly work with the police to ensure cases are investigated appropriately.

HMRC is bound by The Code of Practice for Victims of Crime. The Code requires HMRC to help victims of fraud where HMRC is carrying out a criminal investigation into the crime, or has accepted responsibility for making a decision to prosecute the crime. Matters relating to theft and fraud that are outside HMRC’s remit would be subject to Police investigation.

HMRC also have a vulnerable customer policy to support customers who are the victims of fraud in certain circumstances. This policy ensures that vulnerable customers are treated with care, sensitivity and given the extra support they might need to manage their tax and benefit affairs. Each case is determined on its own individual facts.

In cases of identity theft, where, for example, a tax repayment is fraudulently claimed without a taxpayer’s knowledge, HMRC would not take action against the taxpayer whose identity was stolen, as both the taxpayer and HMRC would be the victims of fraud.

HMRC is not able to estimate the amount spent on tackling this particular type of compliance activity because compliance teams work across a number of compliance risks at any one time.

HMRC has not made any estimate of the value of tax refund fraud in each of the last three years.

In line with the practice of successive administrations details of ministerial discussions are not routinely disclosed.