TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

SPIP Investigation

Following representations at TALC, Revenue have confirmed that there is no prospect of SPIP disclosures needing to be made at a time which cuts across the income tax filing date period.

Accountants will be aware from tax.point, eNews and media reports that a notional 31 October deadline for further disclosures to avoid the risk of prosecution was being mooted.

Revenue stated at a recent meeting of the Tax Administration Liaison Committee (TALC) that their thinking on this matter had developed in the context of the ongoing progress in the SPIP investigation. Their intention now is to offer exemption from the threat of prosecution provided that a taxpayer with unresolved SPIP issues contacts Revenue before Revenue contact them.

It is not now anticipated that Revenue will start issuing any letters as result of the information received from life insurance companies until early 2007. There is therefore no prospect of disclosures needing to be made at the time which cuts across the income tax filing date period.

Revenue have also mentioned that even if an SPIP disclosure has been made, any correspondence from the life company regarding the policies which had been disclosed should be confirmed to Revenue as dealt with. By doing so, accountants will reduce the risk of further correspondence on the case.

These developments were confirmed on the Revenue website, which now states:

  • “Policyholders with outstanding tax liabilities who receive letters from insurance companies, and who come forward to Revenue, before Revenue initiates direct enquiries with such policyholders can expect the following treatment
  • monetary settlements will involve the payment of interest and penalties as set out in the Code of Practice for Revenue Auditors (Under theCode of Practice penalties are normally mitigated to 75% for co-operation)
  • the identity of these persons and their liabilities will be published in accordance with Section 1086 of the Taxes Consolidation Act 1997, and
  • where a full disclosure is made of all undeclared liabilities in respect of funds invested in insurance products along with any other tax default Revenue will not pursue the policyholder with a view to prosecution.