Jan O'Sullivan (Limerick East, Labour)
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Question 114: To ask the Minister for Finance if he will confirm recent reports that the Revenue Commissioners intend to carry out an investigation into large cash deposit holders; the details of any such proposed investigation; the way it is to be carried out; if his attention has been drawn to the concerns expressed by the many compliant taxpayers, many of whom are older people who may have received significant tax free lump sums upon retirement; and if he will make a statement on the matter. [21962/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under recently introduced regulations certain financial institutions (Banks, Building Societies and the Post Office Savings Bank) are required to submit to Revenue details of interest earned on accounts where that interest exceeded €635. For the years 2005 and 2006 the information will be submitted to Revenue by the 15th September 2008, and for the year 2007 by the 31st October 2008.

In advance of the 15th of September, Revenue has recently launched a voluntary disclosure initiative, focused on holders of larger accounts who have not been tax compliant. It applies to persons who held aggregate funds in excess of €100,000, in one or more interest bearing accounts in these financial institutions and who have previously undeclared tax liabilities. Under the initiative, persons who fall into this category have the opportunity to give notice to Revenue, before the 15th of September next, of their intention to make a qualifying voluntary disclosure and to subsequently pay the outstanding liabilities. Those who avail of this opportunity will pay reduced penalties and will not have the settlement details published in Iris Oifigúil. This is in line with the approach outlined in the Code of Practice for Revenue Auditors which provides for the making of a voluntary disclosure prior to the commencement of an investigation or enquiry.

I am also advised that the Revenue Commissioners are very conscious that the majority of deposit account holders for whom reports will be provided will have no outstanding tax issues because the moneys on deposit will have come from sources such as previously taxed income or gains, lump sums on retirement and similar tax free amounts. Therefore, persons who hold such accounts and who are tax compliant are not within the scope of the Revenue initiative and are not required to give any notice, or make any disclosure to Revenue.

Comprehensive information, including Frequently Asked Questions have been placed on the Revenue website www.revenue.ie giving further details of Revenue's initiative.