Dáil Éireann Debate, Wednesday - 27 April 2005
67 Mr. O’Dowd asked the Minister for Finance if he has satisfied himself that the Revenue Commissioners are receiving proper co-operation in their pursuit of tax evasion associated with simple premium insurance policies; and if he will make a statement on the matter. [13284/05]
Amharc ar fhreagra103 Ms Burton asked the Minister for Finance if his attention has been drawn to the decision of Irish Life and Permanent not to co-operate with the Revenue Commissioners investigation into undisclosed funds invested in life assurance products; if he has had contact with the company on the matter; the options now open to the Revenue Commissioners in regard to Irish Life and Permanent customers; and if he will make a statement on the matter. [13337/05]
Amharc ar fhreagraI propose to take Questions Nos. 67 and 103 together.
I am advised by the Revenue Commissioners that their officers have been, and continue to be, engaged in discussions with the insurance industry through its representative body, the Irish Insurance Federation, and have received support and co-operation from them. In parallel with these discussions, the Revenue Commissioners sought and received statistical data from each insurance company.
More recently, the chairman of the Revenue Commissioners has requested each insurance company to write to customers, whose investments exceed or exceeded €20,000, outlining the nature and scope of the proposed investigation and the voluntary disclosure arrangements which exist for those who may have potential tax issues. Giving notice to customers of the proposed Revenue Commissioners investigation ensures that those with potential tax problems will have an increased awareness of their position.
To date, most companies have stated that they will write to their customers. Only one company, Irish Life and Permanent plc, has declined to write to its customers. I am aware that the Revenue Commissioners are concerned that this may result in some Irish Life customers not availing of the voluntary disclosure scheme before its expiry date. However, it does not mean that Irish Life and Permanent plc customers will avoid being detected. On the contrary, the Revenue Commissioners will shortly begin conducting on site investigations in insurance companies, including Irish Life and Permanent plc, to identify all individuals who have used life assurance products to seek to hide moneys which should have been disclosed for tax purposes but were not.
Those who have not availed of the voluntary disclosure scheme will then be pursued for tax, interest and penalties and their names will be published in Iris Oifigiúil if the settlement exceeds the publication threshold of €12,700. It is clearly then in the best interests of individuals that they avail of voluntary disclosure and their insurers should assist them in this. While I have had no direct contact with the company, I am of the view that the approach adopted by practically all the insurance industry will be of great assistance to the Revenue Commissioners investigation and, in particular, to investors who have tax problems. In these circumstances, it is hoped that Irish Life and Permanent plc will provide similar support and assistance to this process.
All investors in life assurance products who have tax problems are required to notify the Revenue Commissioners of their intention to disclose by 23 May 2005. Those who do not will be identified and pursued for all outstanding liabilities in the follow up phase after that date. The Finance Act 2005 has provided a new power to the Revenue Commissioners to examine the customer records of insurance companies in the context of seeking High Court orders for the subsequent disclosure of relevant information. The Revenue Commissioners will use these powers to the full to identify individuals who do not come forward voluntarily.
