Life Assurance
Revenue Investigation of Undisclosed Funds Invested in Life Assurance Products
Introduction
In April 2005 Revenue launched an investigation to identify persons who invested untaxed funds in single premium insurance policies. In advance of the formal investigation taxpayers were given the opportunity to come forward voluntarily and provide calculations of outstanding liabilities and pay the relevant amounts. This phase was very successful and resulted in 5,150 taxpayers coming forward and making payments of c€440 million . In the initial phase of the investigation Revenue secured High Court Orders to identify persons who invested €50,000 or more in these policies covering the period 1 January 1990 to 31 December 2003.
Following on from an examination of the information received, Revenue have decided to look for further High Court Orders in respect of policies where the total amount invested was greater than or equal to €20,000 but less than €50,000. These High Court Orders have now been granted. The information provided by the insurance companies will in some instances relate to compliant taxpayers with no outstanding tax liabilities. In view of this the Revenue Commissioners asked in the course of seeking the High Court Orders that the insurance companies, when writing to their customers advising them of the information to be sent to Revenue, include a 
declaration form (PDF, 59KB) that compliant taxpayers could complete and return to the Underlying Tax (Insurance Products) Project to obviate the necessity for them to be contacted at a later stage of the investigation. Policyholders who have no tax issues should complete and return the Nil declaration form.
Policyholders with outstanding tax liabilities
Policyholders with outstanding tax liabilities who receive a letter from an insurance company should be aware that the Revenue Commissioners notified all relevant insurance companies in a letter dated 8th June 2009 that Revenue are prepared to accept from defaulting taxpayers a full and complete disclosure in lieu of initiatiting any criminal proesecution. The following treatment will apply to this category:
- monetary settlements will involve the payment of interest and penalties as set out in the Code of Practice for Revenue Auditors,
- the identity of these persons and their liabilities may be published in accordance with Section 1086 of the Taxes Consolidation Act 1997 and
- the full declaration and payment must be made on or before 30th November 2009.
Frequently Asked Questions - Letters from Insurance Companies
Consequences for Policyholders who Fail to Disclose and Pay a tax liability
Policyholders with outstanding tax liabilities who receive a letter from an insurance company and do not come forward by 30th November 2009, should be aware that Revenue will use all of the relevant powers provided in the Finance Acts to vigorously pursue them for their undisclosed and unpaid liabilities, as has been successfully done in other underlying tax projects. They will in addition to the imposition of substantial interest and penalties, and publication, face the prospect of being selected for investigation with a view to the initiation of criminal proceedings.
Calculating the Tax Liabilities
The following links can be used to calculate certain tax liabilities
VAT (MS Excel, 67KB)Further Information
A Revenue HELPLINE is available at; 01- 647 4818, Monday to Friday, 8.30 a.m. to 4.30 p.m. (inclusive)
Enquiries may also be addressed to:
Office of the Revenue Commissioners,
Investigations & Prosecutions Division, Underlying Tax (Insurance Products) Project,
4th Floor,
1 Clanwilliam Court,
Lower Mount Street,
Dublin 2.
which may also be contacted as follows; email to utproject@revenue.ie
Fax number; 01 - 647 4821
Supplies of the Declaration may be requested from the;
- Revenue address above or,
- Download a printed version (PDF, 59KB)
Frequently Asked Questions - Declaration Form
Note: Persons who invested untaxed or undisclosed sums of money with a person who carried on an Assurance business as defined in Section 3 Insurance Act 1936, or who was the agent or broker of such a person in particular in life products as set out in Annex 1 and included in Classes I,II, III, VI, of S.I. Number 360/1994 European Communities (Life Assurance) Framework Regulations, 1994.
Explanatory Note (PDF, 48KB) in relation to Voluntary Disclosure of Undisclosed Funds Invested in Life Assurance Products published in April 2005.
