Britain’s tax authorities are poised to begin raiding bank accounts to claim money it claims is due to the Exchequer.
The new power, not yet authorised, has provoked opposition from the Building Societies Association which represents all 44 building societies in the UK.
In its official response to the consultation on the proposals, the BSA warned there are "many examples" of HMRC aggressively chasing “debts” despite these not being owed.
It said that under the new proposals HMRC effectively becomes "judge, jury and executioner" and the public could lose trust in the tax system.
“Ultimately it could lead to customers thinking their money is not safe and cashing out their savings, leading to a return to cash 'under the mattress',” it said.
The BSA said it believed there should be “judicial oversight” on recovering tax debt while “ensuring the appropriate safeguards for UK citizens”.
Some MPs have gone on record with their disagreement, with Lib Dem John Thurso saying the proposal would ride roughshod through the Magna Carta.
HMRC’s chief exec said the new power would be invoked only in extreme circumstances and it would allow taxpayers “enough money to live.” This, however, would be judged after studying the person’s personal spending habits over 12 months.
The proposal is due to take effect this coming April, after a consultation process which is currently taking place.
The present system obliges tax officials to gain authorisation from a magistrates or county court before extracting money. This would be dropped, allowing HMRC to take money without permission from an individual’s account.