Dáil Éireann Debate, Wednesday - 1 June 2005
57 Ms B. Moynihan-Cronin asked the Minister for Finance the action the Revenue Commissioners intend to take in regard to financial institutions that have refused to co-operate in their investigation into undisclosed funds invested in life assurance products; and if he will make a statement on the matter. [18279/05]
Amharc ar fhreagraI am advised by the Revenue Commissioners that they are conducting their investigation into tax liabilities which relate to undisclosed funds invested in life assurance investment products in two stages. In the first stage of these inquiries taxpayers, who invested undisclosed and undeclared funds in life assurance products were given until the 23 May 2005 to give notice to Revenue of their intention to make a voluntary disclosure. This part of the disclosure stage has now been successfully completed and about 10,000 persons have notified Revenue that they may have a tax issue. In addition, approximately 2,000 persons have written to Revenue to say that they have no outstanding tax issues. Taxpayers who have tax issues and who decided to elect for this option have until 22 July 2005 to pay their outstanding liabilities.
Revenue commenced preliminary work on its investigation into funds held in life assurance products in 2004. In the course of this preliminary work, it met the representative body for the life assurance industry as well as with representatives of a number of life assurance companies. In the course of these meetings, Revenue asked that life assurance companies write to their customers and advise them of the up and coming investigation. Nearly all life assurance companies acceded to this Revenue request and wrote to their customers. The co-operation of these life assurance companies has contributed greatly to the successes that have been achieved so far in these inquiries. The co-operation sought was voluntary rather than mandatory, so the question of taking action does not arise.
Revenue formally commenced the second phase of its investigation into the use of life assurance products for tax evasion on 23 May 2005. The object of this phase, at this stage, is to identify persons who have used life assurance policies to conceal undisclosed and untaxed funds and who have opted not to avail of the voluntary disclosure scheme. New powers given in the Finance Act 2005 authorise Revenue officers to examine the records that relate to a class or classes of life assurance policies and policyholders. Revenue has already completed the preliminary work in regard to the use of these new powers.
