His Majesty's Revenue and Customs (HMRC) has confirmed the use of artificial intelligence (AI) to monitor social media posts as part of its efforts to combat tax evasion. This revelation has ignited concerns among privacy advocates and some MPs regarding the potential for overreach and errors in automated decision-making.
HMRC's AI-Powered Tax Crackdown
HMRC has admitted to employing AI technology to scrutinise social media activity, alongside financial records and spending habits, in its pursuit of individuals suspected of tax evasion. The tax authority stated that these AI tools are exclusively used in criminal investigations and are subject to legal oversight, with "robust safeguards in place". This practice is understood to have been ongoing for several years.
HMRC uses AI to monitor social media posts for evidence of tax evasion.
The technology is reportedly used only in criminal investigations.
Concerns exist about potential errors and wider future use of AI.
Privacy Concerns and Parliamentary Scrutiny
Several Members of Parliament have voiced apprehension about the implications of HMRC's AI surveillance. Senior Conservative MP Bob Blackman expressed concerns that legal action based solely on AI-generated evidence could be "draconian" and highlighted the risk of AI making errors, leading to individuals being unfairly targeted. He stressed the necessity of human checks and balances in such processes.
Echoing these sentiments, Sir John Hayes, a former security minister, warned of the potential for a "Horizon Post Office-type scandal" if automated processes replace human judgment entirely. He emphasised the importance of experienced human oversight when dealing with sensitive personal data.
HMRC's Stance and Future Plans
A spokesperson for HMRC stated that the use of AI supports their processes but does not replace human decision-making. They added that greater use of AI would enable staff to dedicate more time to assisting taxpayers and to more effectively target fraud and evasion, ultimately increasing revenue for public services. The department is also exploring AI for other tax processes, including identifying suspected tax evaders and sending automated notifications for outstanding payments.
Broader Tax Evasion Efforts
The use of AI in social media monitoring is part of a wider strategy by HMRC to address the significant "tax gap" – the difference between the amount of tax that should, in theory, be collected and that which is actually collected. This includes efforts to improve data collection from financial institutions, such as requiring banks to share more customer financial details to help HMRC identify savers who have exceeded their personal savings allowance.
