Urgent moves have been made by HM Revenue & Customs to ease concerns among taxpayers and advisers who feared that tax inspectors could be granted powers to tap phone lines and bug offices.

In the second round of consultation on HMRC’s criminal investigation powers, the taxman responded to concerns that powers, including the authority to issue search warrants and make arrests, would be used to pursue civil cases.

HMRC confirmed that such powers would only be used in specific criminal cases by specially trained units.

‘Criminal investigation powers are only available to the specialist teams in HMRC who undertake criminal investigation work. They are not available to other HMRC staff undertaking routine assurance or compliance work,’ the taxman said in its latest consultation document.

‘HMRC has reorganised recently to ensure a clear separation between the criminal investigation work and all its other responsibilities which affect the vast majority of taxpayers.’

John Whiting, tax partner at PricewaterhouseCoopers, said the move by HMRC had provided a ‘clearer understanding of where things are at’.

‘HMRC is still tasked with investigating some serious crimes and it needs criminal powers. What we are pleased about is that these powers have now been clearly ring-fenced,’ he said.