Revenue scheme deadline expires

AT LEAST 7,500 people have told the Revenue Commissioners they intend to make a voluntary settlement ahead of a full investigation of undeclared income held in life assurance products.

The Revenue’s deadline to come forward voluntarily expired last night and it will now set about tracking down the individuals who have failed to take advantage of the benefits of an early settlement.

A spokesman for the Revenue said 5,000 individuals had owned up yesterday alone, adding to the 2,500 who had come forward since the probe was launched last month.

It is believed that more people had informed the Revenue late yesterday of the intention to settle, potentially taking the figure up to 10,000.

A number of people have already paid up, but the value of the settlements was not disclosed.

The remaining individuals who have come forward have 60 days to make a payment.

Those that avail of the voluntary settlement will face interest and penalties on the undeclared income, but will not be prosecuted or named. The Revenue has been probing people who put “hot money” in life assurance products to evade paying taxes. It believes the practice went back at least 25 years and it is targeting those who invested a minimum of €20,000.

The Revenue spokesman said a large number of people had come forward who put money in these products legitimately, but these individuals should not be concerned.

The individuals who have not taken advantage of the early settlement terms will face the full powers of the Revenue. It will proceed to the High Court to compel financial institutions to disclose the names of those who had invested in insurance products.

Anyone caught under the next phase of the investigation will face massive interest and penalty rates, the possibility of criminal prosecution and will be named and shamed.

Some €33 billion has been invested in insurance products since 1980, though only a fraction of this was with undeclared income.

The Revenue has not said how much it expects to net from its latest investigation of tax evasion. Over the past four years, it has yielded €1.65 billion from more than 25,000 people who have either availed of early disclosure or been tracked by Revenue.

The largest of these investigations was into bogus non-resident accounts, which has taken in €800m from 11,900 people.

The probe into offshore assets has netted €723m and a further €135m has been recovered from Ansbacher account holders, the various tribunals of inquiry and the National Irish Bank/Clerical Medical Insurance investigation. Sources estimate that €1bn could be taken from this inquiry.