Single premium insurance policy holders urged to stay calm

News Article - 01 August 2006
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A prominent accountancy association has urged life insurance policy holders in Ireland who have recently had their details handed to the Revenue Commissioners not to panic.

An estimated 50,000 single premium insurance policy holders in the country have recently had their details released to the commissioners by their financial institutions, according to FinFacts.

The investigation launched in May 2005 has already collected more than €400 million in unpaid taxes.

Anyone who invested more than €50,000 in one of the policies between 1990 and 2003 are likely to be reported, but the Association of Chartered Certified Accountants (ACCA) says most have nothing to worry about.

Aidan Clifford, ACCA's advisory services manager, advised affected customers to make sure they have all necessary paperwork, including where their income came from.

"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," he told FinFacts.

"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 that not everyone will be selected for a revenue audit and those who are can simply reply to the Revenue setting out the explanation for the funds.

"Those investors who have concerns should access professional accountancy advice at an early date," Mr Foster added.

He urged the commissioners to take an understanding approach to customers, especially elderly people who may not have been responsible for organising their finances.

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