Liz McManus (Wicklow, Labour)
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Question 163: To ask the Minister for Finance the latest information available on the ongoing investigation by the Revenue Commissioners into the use of life assurance investment products to hide undisclosed income or gains. [33086/06]

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 enquiries taxpayers who invested undisclosed and undeclared funds in life assurance investment products were given an opportunity to make a voluntary disclosure. About 5,000 taxpayers made payments of around €400 million in the course of this disclosure scheme.

The second stage of this investigation relates to the identification and pursuit of taxpayers who should have availed of the voluntary disclosure scheme but who opted not to. This stage commenced on 23 May 2005, the closing date for taxpayers to advise Revenue that they intended to make voluntary disclosures in the first stage of the enquires. 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 its on-site sampling work in all but one Life Assurance company. The information gathered in this process and from the voluntary disclosures has been used to ground applications to the High Court for orders directing Life Assurance companies to provide information to Revenue that will facilitate the identification of the taxpayers who ought to be included in the follow-up enquiry programme. To date 11 High Court orders have been applied for and made. The bulk of the information that is sought in these orders will be delivered to Revenue in October and November of this year. It is expected that the follow-up enquiry programme will commence in the first half of 2007.