Revenue and Life Assurance investigation

U

Unregistered

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Just looking for general advice on the following What is undeclared income in the eyes of the tax inspector ?

The reason for my query is this :

I'm a PAYE worker and 6 years ago I invested a lump sum that I had saved over a long no. of years in a deposit account (that was subject to DIRT tax etc. ) I invested this lump sum (29,000 Irish pounds) in a Euro Growth type fund.
It promised a better return over 5 years than the deposit account and my capital was guranteed, unfortunately after 5 years my lump sum earned ZERO % intrest.......but that's another story.

It's just lately that I realised that fund that I invested in was sold to me in the guise of a Life assurance policy.

So my query is should I contact the Revenue about this as I understand that they are investigating such policies.
Will they regard my savings as undeclared income although I paid paye and DIRT tax ?

Thanks ,

Michael
 
Re: Revenue and Life Assurande investigation

Unless you are specifically requested by the Revenue to answer particular questions or otherwise to make a submission, there is probably no need for you to do anything, despite much of the alarmist coverage that you might read in the newspapers.
 
Re: Revenue and Life Assurande investigation

Will they regard my savings as undeclared income although I paid paye and DIRT tax ?


I don't see how they can, where is the liabilty to tax if you have paid both PAYE when you earned the money in the course of your employment and DIRT when you earned interest on your savings?

BTW, to my knowledge, all savings and investment products sold by life assurance companies are in fact life assurance policies (due to regulations), even though they are not sold or appear to be life assurance.
 
Re: Revenue and Life Assurande investigation

Unregistered said:
It's just lately that I realised that fund that I invested in was sold to me in the guise of a Life assurance policy.
Click to expand...

Most, if not all, indirect equity investment (e.g. unit linked funds, tracker funds, UCITS, With Profits funds, tracker bonds (?) etc.) are ultimately structured as life assurace policies. There is nothing nefarious about this and, unless you have other reasons to believe otherwise (e.g. your situation fits the criteria outlined [broken link removed]), you are very unlikely to have anything to worry about. If in doubt you could contact your tax office for clarification.
 
A policy bought for less than €20,000......there is no need to inform the revenue?
If this policy was bought using a gift from a parent who is deceased, what is the story. The parent was a PAYE taxpayer and this was to fund higher education for grandchild. If it time the revenue come looking for evidence of non evasion what should I do?
 
Re: Revenue and Life Assurande investigation

ClubMan said:
Most, if not all, indirect equity investment (e.g. unit linked funds, tracker funds, UCITS, With Profits funds, tracker bonds (?) etc.) are ultimately structured as life assurace policies. There is nothing nefarious about this... and,
Click to expand...
Sorry, there is everything nefarious about this. These products are far more naturally unit trusts or some other such pure investment vehicle. The historic reason that they are couched as life assurance on the basis of some token life cover is precisely to keep them confidential from Revenue.
 
But aren't all unit linked/trust/with profit/etc. funds these days ultimately life assurance policies? Are you saying that all of these are suspect and that all holders of such funds are liable to make some sort of declaration to Revenue? Surely not?!
 
The point is that life assurance policies were legitimately non disclosable and also needed High Court orders by Revenue to access. Other instruments were either required to be disclosed in annual tax returns or had details of their ownership in the public domain and thus readily accessible to Revenue.

The life assurance industry didn't make things this way but given this reality hot money saw life assurance investments as a major attraction.

Yes every life assurance investment is suspect as indeed is every Mercedes or holiday home in Wales or positive balance on a Credit Card or Credit Union deposit or Post Office Savings Cert.
 
Going back to the original query [broken link removed] should help you decide whether or not you may have an issue to deal with in relation to life assurance policies potentially under investigation. While Madonna seems to be suggesting that all life assurance policies are suspect this does not tally with the contents of the above FAQ.
 
The Revenue letter that I received via New Ireland states that the investigation will initially focus on policies of €20K or more in value which certainly suggests that they are not ruling out the possibility of widening the investigation later on.
 
Newspaper articles at the time that this was announced, stated that revenue would be investigating polices of £20k and above.
 
But there is a good chance they will widen that investigation in the future. Better safe than sorry. If you have something to declare, do it as soon as possible.
 
Having saved a lot of money in my piggy bank and invested it in some of these schemes I assume the Revenue will be contacting me in due course. What sort of evidence will they be looking for from me to show that it was legitimate money?
 
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