Final answer:
HMRC needs financial information to collect taxes, prevent tax evasion, enforce financial regulations, combat financial crimes such as money laundering and fraud, and to inform fiscal policy and economic analysis.
Step-by-step explanation:
HM Revenue and Customs (HMRC) is interested in financial information because their main functions include the collection of taxes, the administration of certain forms of state support, and the enforcement of financial regulations. Taxes are a primary source of income for the government and fund public services and infrastructure. For this reason, HMRC needs comprehensive financial records from individuals and businesses to ensure the correct amount of tax is being paid and to prevent tax evasion. Additionally, HMRC's interests in financial details help to combat financial crimes such as money laundering and fraud. They are tasked with enforcing financial compliance and thus require access to accurate financial records to fulfill their legal responsibilities. The information also aids in the development of fiscal policy and in the analysis of economic trends, which can have far-reaching impacts on the country's financial health and policy planning.