Cowen urges Il&P to inform clients
It is reckoned that up to €1 billion is due to the Revenue in unpaid taxes and fines due to tax dodging using single premium investments across the industry since 1980.
Unlike the rest of the industry, IL&P refused to write to policyholders informing them that Revenue has put a May 23 deadline for tax cheats to own up.
An IL&P spokesman said to write to 250,000 policyholders going back to 1980 would be hugely expensive and time-consuming without necessarily achieving anything much for the Revenue.
The tax issues had nothing to do with the product on offer and “it was a matter for the Revenue and the individuals in question to deal with,” he said.
Following the stand-off, Mr Cowen told RTÉ: “I think that from the minister for finance’s point of view I am stating clearly that the co-operation of insurance companies would greatly facilitate the early identification of any potential liability people have and thereby allow them to deal with the Revenue as quickly as possible with the least penalty involved.”
Asked if he would ask Irish Life to reconsider its position he replied: “I would, yes.”
Revenue warned Irish Life’s refusal to write to potential tax dodgers could result in clients paying substantially higher tax settlements down the line.
A spokesman for the Revenue said it was concerned that those with tax issues would wrongly conclude “I’m in the clear” if they are not written to by the group.
IL&P and the other institutions were asked to advise clients if they have tax issues, the settlement date deadline is May 23, 2005.
Failure to comply could result in dodgers paying double.
Revenue will also go after cheats who invested less that €20,000 in these funds at a later date.
With new powers under the 2005 Finance Act, the Revenue will go to the court to gain access to individual investments.
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