Proposals announced as part of this year\'s Budget that would allow HM Revenue and Customs (HMRC) to take money directly from the bank accounts of tax debtors could undermine existing insolvency laws by effectively allowing the department to be treated as a preferential creditor, Frank Haskew, head of tax at the Institute of Chartered Accountants of England and Wales (ICAEW) has warned.

Mr Haskew said that new powers could lead to "perverse effects". In a submission to the Treasury Select Committee, which is currently hearing evidence on the Budget announcements, Mr Hask...