Sources of Information
It is common for SCI/CIF investigations to start as a direct result of information received by the Inland Revenue.
Below are some of the more common sources of information available to the Inland Revenue:
Informers - include ex-spouses and ex-employees who often have privileged information and are a key source to the Inland Revenue
Financial Institutions - by law institutions such as banks are required to pass on information relating to cash and income from investments and deposits.
Overseas Tax Authorities - the Exchange of Information Act has aided and facilitated an increase in the information received in this way, most specifically from the US and the EU. In 2002 the SCI and Inland Revenue received approximately 809,000 files of information from foreign authorities. Around 214,000 files flowed in the other direction.
Government Departments & Local Authorities - the Customs and Excise department is working increasingly closer with the Inland Revenue. A variety of other departments for example the Land Registry are also used for obtaining information.
Other Sources - if you spend or save your undisclosed income you are at risk of getting caught. The Revenue also has sources that give lifestyle information. For example private plane and classic car owner lists are used, as are customer records for swimming pool builders and yacht makers.
There have even been cases of the Inland Revenue tracking movements in and out of the country with information supplied by local airports.
Therefore, if you have done something wrong it is quite possible that you will get caught at some time.