Hidden tax danger on social websites
6th May 2008
On 30th April 2008, Holly Thomas wrote about HMRC’s interest in social websites. She wrote:
TAXPAYERS are being warned to be careful about what personal information they post on social network websites as officials prepare to scour the likes of Facebook and Bebo for tax evaders.
Tax specialist CCH Fee Protection reported that, during the past few years, HM Revenue & Customs has developed a range of digital methods for identifying potentially undeclared earnings.
It claimed HMRC’s Irish counterpart has already started to browse social networking websites.
Peter Horgan, managing director of CCH Fee Protection, said: “Although there have been no disclosed cases yet in the UK, it is just a matter of time before HMRC starts to use this new technique. Members need to apply caution when posting personal information about their personal and business affairs on the internet.
“Individuals tempted to inflate their business interests on professional networking websites such as LinkedIn, or talk up their personal wealth by exhibiting their new luxury car or boat on Facebook, should think twice because this could spark off investigations.
“HMRC uses local newspapers and media databases to build up a profile of individuals it is targeting, so it is inevitable it will look to the internet as an additional source of information.”
Tiresome work, but someone will have to do it.
Link: The article can be found here.
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