GDPR Data processing modelTax Fraud Detection and Risk-Based Audit Targeting

GovernmentPublic

Processing of taxpayer data by HMRC (or equivalent public authority) to detect correlations between high-risk files and fraudulent behaviour using data analytics and machine learning tools, in order to prioritise audits and investigations.

Purposes (1)

A purpose is the objective pursued by the setting up of your file. It indicates what the processing of personal data will be used for, its purpose. This purpose must be clear and understandable

Improve targeting of taxpayers to be audited

Legal obligation

Art. 6(1)(c) (legal obligation) + Art. 6(1)(e) (public task). HMRC is legally required to collect and protect tax revenue; fraud detection is a statutory obligation. Legitimate interest is not sufficient for a public authority in this context.

Data categories (1)

Personal data is any information relating to an identified or identifiable natural person. A natural person can be identified either directly (eg surname and first name) or indirectly (eg phone number, social security number, email or postal address, but also voice or image)

Fraud detection dataset

Data details

Telephone numberrequired

Emailrequired

Bank detailsrequired

Tax data for individualsrequired

Professional tax datarequired

Data conservation rules

Active base:

Retained while investigation or audit is ongoing.

Retention aligns with storage limitation (Art. 5(1)(e) UK GDPR) and HMRC statutory guidance.

Intermediate archiving:

6 years after closure of case

Limitation Act 1980; HMRC compliance record retention

Destruction

Data subject (2)

A data subject is any person whose data is collected, retained or processed by the data processing. e.g. In a recruitement process, any candidate for a position proposed in recruitement management process

Citizens
Legal entities

Created at:07/08/2023

Updated on:08/01/2025

Nb using:5

GDPR Data processing modelTax Fraud Detection and Risk-Based Audit Targeting

Purposes (1)

Data categories (1)

Fraud detection dataset

Data subject (2)

Access the full processing template