Brian Cowen (Laois-Offaly, Fianna Fail)

I am advised by the Revenue Commissioners that as part of their ongoing assessment of potential tax risks, various methods used by taxpayers to hide undisclosed income or gains are identified. Some of these have been the subject of major investigation projects. The information assembled by Revenue from various sources, including disclosures made by taxpayers in the course of some of the recent investigation projects, indicates that there may have been use of insurance products for the purpose of hiding undisclosed income or gains.

Revenue's concern relates to the status of the moneys which are invested by the taxpayer into the relevant policies and whether they were undisclosed income or gains of the taxpayer. The research into this area, which Revenue has been carrying out for some time, will now be used to drive a further investigation project aimed at recovering any previously undisclosed liabilities arising from the use of insurance products as a vehicle for evasion.

The structure of the investigation is a matter for the Revenue Commissioners but I understand from them that while the precise nature of the investigation has not been decided the successful approach taken in the investigations of bogus non-resident accounts and offshore accounts is likely to form the basis for this latest investigation. This is likely to involve discussions with the industry to seek its co-operation, a defined period for voluntary disclosure and subsequent pursuit of those who failed to come forward in the voluntary phase. Preparatory work is under way and the investigation itself will begin next year.

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