HMRC is on the cusp of having its powers dramatically strengthened so that it can compel banks to give them credit and debit card sales details.

The move is part of a determined bid to stop tax avoidance among retailers who may be tempted to disguise the size of their true sales figures and profitability levels.

Measures in the draft Finance Bill, set to be published on 11 December, will empower the taxman with the necessary clout to obtain information from merchant acquirers - the divisions of banks that handle debit and credit card payments - about businesses running payments through them.

The government said the move was intended to help "identify businesses that do not declare their full sales, or that operate in the hidden economy".

The new powers would enable the taxman to verify businesses' sales figures to ensure transactions are actually going through companies' books.

Chris Oates, a tax partner at Ernst & Young told The Telegraph: 'Effectively it allows HMRC to sweep data on a wider basis," said Chris Oates, a tax partner at Ernst & Young. It's an extension of the government's policy to tackle tax evasion'.

An HMRC spokesman said: 'The details we will be getting will show the total amounts that the business receives via card payments. We will not be getting details of individual card holders who make purchasers.

'This is good news for the majority of businesses who accurately disclose their income to HMRC.'