Ignoring a notice can lead to an initial £300 penalty. Failing to report inaccuracies can result in penalties of up to £3,000.
However, notices can be challenged if HMRC cannot demonstrate a “reasonable” need for the information requested.
Ms Strickland added: “HMRC already has sweeping powers, and expanding them further risks trampling over the privacy of ordinary Britons. Ministers must rein in the tax authority and ensure that this never becomes implemented.”
Nimesh Shah, chief executive of accountancy firm Blick Rothenberg, raised concerns about where the boundaries would be drawn. Mr Shah said: “The challenge will be ensuring that these powers remain proportionate.”
He warned that questions will inevitably arise about distinguishing between material genuinely relevant to a tax enquiry and broader data that may be commercially sensitive or personal.
Seb Maley, chief executive of tax insurance provider Qdos, said HMRC’s move reflected the growing role of AI in tax affairs.