Willie Penrose (Westmeath, Labour)
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Question 118: To ask the Minister for Finance the progress made to date in 2005 in regard to the second phase of its investigation into the use of life assurance products for tax evasion, which commenced on 23 May 2005; and if he will make a statement on the matter. [33068/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that they are conducting their investigation into the use by taxpayers of life assurance investment products for the purposes of tax evasion in two stages. In the first stage of these inquiries taxpayers, who invested undisclosed and undeclared funds in life assurance products were given until 23 May 2005 to advise Revenue of this. This part of the disclosure stage has now been successfully completed and about 10,000 notices of intention to make a disclosure were received from taxpayers or their agents and a total of €374 million has been paid in tax, interest and penalties by approximately 5,000 individuals. Some of the notices received by 23 May were protective. Correspondence was received from others indicating that no liabilities arose.

Revenue formally commenced the second stage of its investigation into the use of life assurance products for tax evasion on 23 May 2005. New powers were provided in the Finance Act 2005 to authorise Revenue officers to examine the records that relate to a class or classes of life assurance policies and policyholders in the course of conducting sampling exercises. Revenue has completed the preliminary work regarding the use of these new powers and authorised officers are actively engaged in the sampling process. The information gathered in this process and from the voluntary disclosures will be used to ground applications to the High Court for orders directing insurance companies to furnish details on policyholders and policies to Revenue. It is envisaged that the initial applications will be made in late 2005 or early 2006.