Approximately 140,000 letters are issuing to SPIP holders in the current phase of the investigation.

Chartered accountants who were involved with the initial phase of the SPIP investigation which was concerned with policies of €50,000 or more invested between 1 January 1990 and 31 December 2003 will be familiar with the handling of these letters. The important thing is to actually deal with them, even where no additional tax is due, to minimise the follow-up to-ing and fro-ing with Revenue. The deadline for settlement of outstanding liabilities if necessary is 30 November. At this stage of the investigation, there is no scope for avoiding penalties or publication under the Audit Code of Practice and TCA97. However the making of a full settlement should ensure that prosecution is avoided.

As mentioned, where there has been no tax default, Revenue require confirmation of that fact and a declaration form to that effect is being included with the letters. The form of declaration was discussed at TALC meetings between the representative professional bodies and Revenue and is different to that used for investments over €50,000. The wording is now less onerous for taxpayers and their advisers and the declaration form may now be suitable for use in many cases to reduce compliance costs.

A pro-forma declaration, along with other Revenue published material, is now available on the Revenue website at http://www.revenue.ie/en/practitioner/investigations/life-assurance/index.html.