Investors to expect Revenue inquiry

HOLDERS of single-premium insurance policies, who have had their details released to the Revenue Commissioners, have been urged not to panic by a national accountants body.

People who invested more than €50,000 in a single premium insurance policy between 1990 and 2003 either have, or will, receive a letter from their financial institution notifying them their investment details have been passed to Revenue.

The Association of Chartered Certified Accountants (ACCA) has advised investors in this position that owning a single premium insurance policy is “not a crime” and most “have nothing to worry about”.

Aidan Clifford, ACCA’s advisory services manager, said concerned individuals should gather up all necessary paperwork, including details of where the money came from.

It also had the following advice: “If it was an inheritance, contact the solicitor who dealt with it and ask for a confirmation letter. If it was from sale of land or a house, again contact the solicitor who dealt with it or if it was reinvestment of a bond or investment, contact the financial institution where the earlier investment was made.

“If it was life savings, then there should be records of the savings gradually increasing in the form of old deposit books.”

Brendan Foster, chairman of the ACCA Practitioners Network, said not everyone would be selected for a Revenue audit and those who are can simply reply to the Revenue setting out the explanation for the funds.

He advised those investors who have concerns to access professional accountancy advice at an early date.

Mr Foster called on the Revenue Commissioners to adopt a pragmatic and sensitive approach to cases.

“There is a real concern for older people, especially those whose spouse looked after the family finances and is now deceased. Some can be extremely worried over perceived tax liabilities that are not due,” he said.