The Inland Revenue's "Big Brother" powers of surveillance will not be curbed by the Human Rights Act, a partner in a leading firm of accountants said.

Chris Chadburn, a partner at Baker Tilly, said many of the provisions of the Act, which became law on Monday, would be negated by the new Regulation of Investigatory Powers Act, which came into effect on September 24.

The Human Rights Act enshrines into UK law for the first time the European Convention on Human Rights, which calls, among other things, for privacy.

But Mr Chadburn said the RIP Act would allow the Revenue, often acting jointly with Customs and Excise, to continue its undercover operations to investigate individuals and companies suspected of tax fraud and evasion.

Tentacles "British citizens think they are living in a free society but they're wrong. The Inland Revenue has tentacles of power which permeate every aspect of life.

"Big Brother's watching and if your case warrants it, he's pretending to be a customer in your shop, he's talking to your neighbours, he's calculating the value of your house and he's snooping around your family and friends.

"Inspectors have no fear of the HR Act curtailing surveillance activities because the RIP Act will enable them to carry on as usual."

An Inland Revenue spokeswoman said: "The Inland Revenue takes its duties under the Human Rights Act very seriously. We are undertaking a training and awareness programme across the department to ensure that Inland Revenue staff are aware of customers' rights and responsibilities.

"We are, of course, aware that there are areas of our work and legislation which will be challenged over the coming months and years."