Dáil Éireann Debate, Tuesday - 13 December 2005
77 Mr. Penrose asked the Minister for Finance the amount paid to date in 2005 to the Revenue Commissioners in respect of settlements made in connection with their investigation into the use of life assurance policies for tax evasion; the progress made to date in 2005 in regard to the second phase of their investigation, which commenced on 23 May 2005; and if he will make a statement on the matter. [39013/05]
View answerI am advised by the Revenue Commissioners that to date payments totalling €381 million have been made in tax, interest and penalties by approximately 5,000 taxpayers who have come forward voluntarily.
The Revenue Commissioners are conducting their investigation into the use by taxpayers of life assurance investment products for the purposes of tax evasion in two stages. In the first stage of these inquiries, taxpayers who invested undisclosed and undeclared funds in life assurance products were given until 23 May 2005 to advise the Revenue Commissioners of this. This part of the disclosure stage has now been successfully completed and about 10,000 notices of intention to make a disclosure were received from taxpayers or their agents. Some of these notices were protective. Correspondence was received from others indicating that no liabilities arose.
The Revenue Commissioners formally commenced the second stage of their investigation into the use of life assurance products for tax evasion on 23 May 2005. New powers were provided in the Finance Act 2005 to authorise Revenue Commissioners officers to examine the records that relate to a class or classes of life assurance policies and policyholders in the course of conducting sampling exercises. The Revenue Commissioners have completed the preliminary work regarding the use of these new powers and authorised officers are actively engaged in the sampling process. The information gathered in this process and from the voluntary disclosures will be used to ground applications to the High Court for orders directing insurance companies to furnish details on policyholders and policies to Revenue. It is envisaged that the initial applications will be made in early 2006.
