There were 782 taxpayer arrests made by HM Revenue & Customs during the 12 months ending 31 March 2019, down 11% from the previous year.
This downward trend has been ongoing for five years, according to law firm RPC.
Adam Craggs, a partner at the firm, said: “There has been some criticism of HMRC for being too ‘trigger happy’ in the past.
“Fewer arrests could be a sign that HMRC is now exercising its powers of arrest more responsibly and in accordance with the law.”
The UK taxman was given the power of arrest following the merger of the Inland Revenue and HM Customs and Excise in 2005.
Prior to that, only customs officers could arrest someone.
Craggs continued: “If HMRC has taken that criticism on board, and is now being more thorough before deciding to make an arrest, than that is to be welcomed.”
What are the rules?
HMRC cannot arrest a person simply because it has the power to do so, RPC added.
Typically, a taxpayer who is under investigation for tax evasion will agree to attend a voluntary interview under caution.
In such circumstances and where the taxpayer is cooperating, HMRC should not ordinarily exercise their power of arrest.
Craggs added: “It is to be hoped that the fall in HMRC arrests is as a consequence of HMRC having a better understanding of their power of arrest and when it is appropriate to exercise that power.
“Getting it wrong can be costly for HMRC.”
