Willie Penrose (Westmeath, Labour)
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Question 200: To ask the Minister for Finance if the persons who have invested in a single life insurance premium policy whereby the source of such investments are clearly identifiable such as arising from an injury compensation or from PAYE earnings saved over a number of years or the sale of a legitimate product such as land, property or other items do not have to be concerned with the deadline of 23 May 2005; if assurances will be given to elderly persons (details supplied); and if he will make a statement on the matter. [17260/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the investigation into the source of moneys invested in life assurance products is concerned with tax evaders and not with compliant taxpayers. Revenue has made it clear that the investigation applies only to those who invested in insurance products using money that should have been but was not disclosed to Revenue, money colloquially known as "hot money".

I am further advised by the Revenue Commissioners that individuals who are satisfied that they invested in these products with money, which was not taxable, or with money which came from savings out of previously taxed income or gains should not have to make any disclosure. In general, this would include individuals who invested the proceeds of redundancy payments, accident compensation, lump sums received from a pension fund on retirement. However, compensation for loss of earnings and profits from the sale of lands, property and other items may, depending on the circumstances, be taxable. Where investors have paid tax on profits or gains from these sources and have subsequently invested the taxed proceeds in life assurance investment products, no further tax issues should arise.

Additionally, while the moneys were with the insurance companies the funds in which they were invested were taxed and therefore the individual investors should have no further liability to pay on those profits. Anyone who received a letter from a life assurance company and who has no tax issues should have no need to contact the Revenue Commissioners.