Connect is a new social network analysis software data mining computer system developed by HMRC (UK) that cross-references business's and people's tax records with other databases to establish fraudulent or undisclosed (misdirected) activity.
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History
HMRC introduced Connect in the summer of 2010; it was not fully functioning. Around 350 HMRC employees are involved with Connect, who work with an analytical compliance environment. Connect was developed by BAE Systems Applied Intelligence (former Detica in Surrey) for £45m.
From September 2016, Connect will interface with financial information from British Overseas Territories; these have been known tax havens. From 2017 Connect will interface with around sixty other OECD countries.
Tax avoidance is legal, but tax evasion is not.
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Sources of information
Connect cross-references information from many other UK government databases, including:
- Adverts on the internet e.g. Rightmove and Zoopla
- Bank accounts and pensions
- Council tax
- Credit and debit card transactions, going back four years
- Companies House
- DVLA
- DWP (former Benefits Agency)
- eBay and other internet marketplaces
- The electoral roll
- Gas Safe Register
- Insurance companies
- Land Registry - for capital gains tax
HMRC also independently looks at Google Earth.
Technology
The system deploys the chi-squared test and Benford's law to look for anomalous tax receipts. The system is operated by the Risk and Intelligence Service (RIS) division of HMRC. The software combines analytic tools (Enterprise Guide) from SAS Institute, which collects the information, and NetReveal from BAE Systems AI, which collates it into meaningful information.
Purpose
Connect looks for income disparities, often caused by undeclared income. If someone drives an expensive car, but does not have the income to run one or afford one, Connect can discover this.
Source of the article : Wikipedia
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