The UK’s HM Revenue & Customs (HMRC) plans to seek power to examine private individuals’ financial details to see whether they have been dodging tax and recover unpaid bills.
According to the HMRC, the new measures would only affect about 17,000 individuals each year who have wilfully withheld tax owed and have sufficient funds in their accounts to pay.
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Under the proposal, the HMRC plans to ask banks for the statements of individuals so it can work out how much money it can take out of their accounts.
In a consultation due to end 29 July, HMRC proposes introducing the power to take unpaid tax directly from people’s bank accounts.
The proposal – put forward in Chancellor George Osborne’s March Budget – came under attack from MPs at a hearing of the House of Commons Treasury Committee.
Andrew Tyrie, chairman of the Treasury Committee of MPs, said, "The proposal to grant HMRC powers directly to recover money from taxpayers’ bank accounts remains of considerable concern to the Treasury Committee.
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By GlobalData"Prior independent oversight is essential. Mistakes could have serious financial consequences for taxpayers, and risk undermining public confidence in HMRC."
However, HMRC chief executive Lin Homer defended the measures, which she said were aimed at "a small number of people wilfully not paying their taxes.
She said individuals would be protected by stronger safeguards than in other countries, such as Australia, the US and France, where the tax authority has similar powers.
