Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

There will be no withholding tax in that scenario for a life assurance company but as they move the profits into the company they would pay corporation tax on that. Chapter 5 of Part 26 of the Taxes Consolidation Act 1997, deals with the taxation of the investment return on life assurance policies and policies in respect of capital redemption businesses, in so far as they are new basis business. With investment in such life policies allowed to grow without the imposition of tax, tax is due only on the happening of a chargeable event. The exit tax must be deducted on the happening of a chargeable event. That event happens on the maturity of the life policy, including when payments were made on death or disability which payments result in the termination of a life policy, on the surrender in whole or in part of the rights conferred by the life policy, including where payments are made on death or disability which payments do not result in the termination of the life policy, and on the assignment, in whole or in part, of the life policy on the ending of an eight-year period beginning with the inception of the life policy, and each subsequent eight-year period beginning when the previous one ends. The amount of exit tax to be deducted is calculated by applying a rate of tax on the gain arising on a chargeable event. There are rules for calculating the amount of the gain. The taxable gain arising on a chargeable event is the policy proceeds, less the premium paid, in the event of maturity, close or surrender of the policy. I could supply this note to the Deputy but it is quite detailed and lengthy. That is my understanding of the scenario.