The Labour Party Spokesperson on Finance, Deputy Joan Burton, has described the decision of Irish Life & Permanent not to cooperate with a Revenue Commissioners investigation into undisclosed funds invested in life assurance products over the past 25 years as ‘both surprising and disappointing’.

“There is prima facie evidence to suggest that substantial amounts of undeclared money may have been invested in these accounts with the possible loss to the Exchequer running to hundreds of millions of Euro. While there is no suggestion that any of the firms offering these accounts were involved in illegality, there is surely an obligation on every citizen, private and corporate, to assist in efforts to stamp out tax evasion.

“Tax evasion is not a victimless crime. Every Euro in tax evaded means an extra Euro on somebody else’s tax bill. In addition many of these policies were taken out a time when the Exchequer was desperately in need of money to fund health, education and other essential public services.

“It is also important that the issue be clarified for Irish Life & Permanent customers. Apparently, only a small percentage of the funds invested in such policies originated as ‘hot’ money. Irish Life’s decision leaves tax compliant customers anxious and apprehensive. The company needs to make it clear which customers need to contact the Revenue and make a declaration.

“Given that Irish Life and Permanent is the only company to refuse to write to their customers on this matter, I hope that the company will now reconsider its decision. As many of these accounts will have been opened prior to its privatisation, when Irish Life was still a state company, the government should make it clear that it expects Irish Life & Permanent to provide all required cooperation to the Revenue Commissioners.

“Finally I would hope that the Irish Financial Services Regulatory Authority will also examine whether or not it has a role to play in regard to this development. Speaking to a conference in Dublin earlier this month, the Chief Executive of IFSRA, Dr. Liam O’Reilly said :’Ethical behaviour, including transparency in business dealings, are key values expected of boards and senior management of all financial entities operating in Ireland. Surely cooperation with Revenue Investigations into tax evasion should be a basic ethical requirement for the Boards of all financial institutions. If this cannot be achieved on a voluntary basis that it may be time to look again at whether or not additional legislative powers are required to achieve this objective.”