The Revenue Commissioners will shortly introduce a voluntary disclosure scheme to encourage individuals who put money into certain insurance policies in order to evade tax to pay their dues. Siobhán Creaton, Finance Correspondent, reports.
Up to €33 billion of the single premium investment policies were sold over the past 20 years by the major life assurance companies including Irish Life, and the insurance subsidiaries operated by Bank of Ireland and AIB.
Introducing legislation to facilitate the scheme in the Finance Bill, the Minister for Finance, Mr Cowen, said he did not know how much tax could be recovered.
"It could be hundreds of millions. The Revenue don't know until they look," he said.
The voluntary disclosure scheme, which will be similar to the one introduced for holders of bogus non-resident accounts, will offer reduced interest and penalties for those who come forward to pay their tax liabilities within a certain timeframe.
The new measures announced yesterday will give the Revenue powers to access information on insurance policies taken out by Irish residents on a sample basis.
It can use this power once it has reasonable grounds for suspecting that such policies may have been used to facilitate tax evasion.
The Bill also gives the Revenue powers to pursue and prosecute individuals and companies that encourage and facilitate customers to evade tax.
This will only apply to offences committed from the date the Bill is enacted.
A number of tax loopholes were also closed off in yesterday's Bill, including the splitting of properties to reduce stamp duty.