Under gross roll-up investments, investments may accumulate without the imposition of a tax. However, an exit tax applies when a chargeable event occurs, such as the receipt of payments from or the disposal of investments in the life policy or fund, or the ending of each eight-year period following the acquisition of the policy or the units in the fund. There are varying rates of tax in these investments, depending on the frequency of payments to the investor, and additionally in the case of the foreign investments, on whether the income or gains are correctly included in the investor's tax return.

See this item in context