Dáil Éireann Debate, Wednesday - 27 April 2005
119 Mr. M. Higgins asked the Minister for Finance the progress made to date by the Revenue Commissioners in its investigation into the reported use of single premium insurance policies as a tax avoidance mechanism; if an estimate is available of the amount of tax that may have been evaded; and if he will make a statement on the matter. [13343/05]
Amharc ar fhreagra125 Ms Burton asked the Minister for Finance if, arising from the announcement of the Revenue Commissioners investigation into undisclosed funds invested in life assurance products, there are plans to investigate those who may have aided and abetted evasion through the sale of these products; and if he will make a statement on the matter. [13338/05]
Amharc ar fhreagraI propose to take Questions Nos. 119 and 125 together.
I am advised by the Revenue Commissioners that the current focus of their investigation is into undisclosed funds invested in life assurance products. In the first phase of the investigation taxpayers who come within the scope of the investigation are being encouraged to come forward voluntarily and make the appropriate disclosures and payments to the Revenue Commissioners before the deadline dates. In this regard taxpayers are required to give notice of an intention to make a qualifying disclosure by 23 May 2005 and to follow up with the actual disclosure and payment of the outstanding liabilities by 22 July 2005.
Those who do so and make qualifying disclosures will pay reduced penalties, will not have their names published in the tax defaulters lists and will not be prosecuted. Those who do not will be identified in the follow up investigation and will face the full rigours of the tax code, including publication of their names in Iris Oifigiúil, if the settlement exceeds the publication threshold of €12,700 and consideration for prosecution.
If, during their investigation, any evidence of aiding and abetting taxpayers to evade tax emerges, it will also be investigated. The Finance Act 2005 makes changes to the law in this regard. It does not, however, have retrospective effect but will be of benefit in future investigations. It is too early at this stage to predict the monetary outcome of this investigation.
