Financial sector at risk of data theft as informants cash in

HMRC paid more than £460 000 to confidential informants in the year to 31 March 2016 according to information obtained from the Revenue by City law firm RPC.

RPC said the professional and financial services sector could be at particular risk of such informants. The Panama papers data leak has provided HMRC with a substantial list of targets. These have given potential whistleblowers an opportunity to inform on former colleagues or employers who may be mentioned in the leaked documents.

Adam Craggs tax partner at RPC said the money HMRC is paying to informants reflects the pressure it is under to increase the tax yield. ‘Informants who supply information that is expected to result in a higher tax yield could receive substantial rewards which may prove a big incentive for those with intimate knowledge of financial arrangements to inform on companies and wealthy individuals. This is a convenient...