HMRC has confirmed that it is using AI (Artificial Intelligence) tools to scan the social media accounts of suspected tax fraudsters as part of their drive to increase the use of AI in the tax system.
Up until now, the introduction of AI tools has largely been aimed at improving systems and assistance for tax payers contacting HMRC, but this step means that they are now directly using the tool to tackle tax evasion.
The tools are still subject to legal oversight and have not replaced human decision making, but they are another tool disposed to tackle tax cheats. It is important to emphasise that currently the tool is only being used to monitor suspected tax cheats, not everyday tax payers.
The monitoring of social media by HMRC is nothing new, in fact some people may be surprised to find out what information HMRC has access to, but this is the first time they have admitted using AI to speed up the process. In one famous example, a woman who claimed benefits citing her ill health was exposed through her social media posts, about long distance running.
It will be interesting to see how HMRC using it’s AI tools in the future to tackle tax evasion and fraud.