The State's biggest life assurance company, Irish Life & Permanent, is refusing to co-operate with a Revenue Commissioners' investigation to identify whether any of its 250,000 policyholders have evaded tax, writes Siobhán Creaton, Finance Correspondent.
The company has told Revenue that it will not write to its customers to alert them to the new investigation, and to advise those with a tax liability to voluntarily come forward to make a settlement.
A Revenue spokesman said the company's stance was disappointing.
Irish Life & Permanent is the only life assurer to refuse to act on Revenue's request, and its position is a blow to the investigation announced on Monday.
Revenue is targeting individuals who invested more than €20,000 in one or more policies since the 1980s using funds that they had not paid tax on.
Yesterday Ark Life, Eagle Star, Hibernian and others said they were trawling through lists of their policyholders to identify those who may need to make a tax settlement.
These companies have already disclosed to Revenue the approximate number of customers who invested in policies such as single-premium accounts, and the total figure invested in the years concerned. They intend to send letters to their customers next week.
An Irish Life & Permanent spokesman said it had held meetings with Revenue officials before the investigation was announced, and had decided not to communicate directly with its customers on the matter.
"We have co-operated with the Revenue, and have provided a broad breakdown of policies sold and the sums invested in them, but we don't have any plans to write to our customers. We don't believe it is appropriate."
He said Irish Life & Permanent believed this issue was "between the Revenue and these individuals".
The Revenue spokesman said it would continue to talk to the life assurance industry as part of its investigation.
The companies are not obliged by law to accede to Revenue's request for this type of co-operation, but financial institutions have written to customers targeted in previous investigations into tax evasion through bogus non-resident accounts and offshore investments.
Revenue is encouraging individuals who have used life assurance policies to evade tax to avail of a voluntary disclosure scheme that offers reduced penalties on the tax owed, and guarantees that their names will not be published in the tax defaulters' list.
It also guarantees that Revenue will not take criminal proceedings against them over such disclosures.
Those who want to make a voluntary disclosure must inform Revenue by May 23rd, and pay their total tax liabilities together with interest and penalties by July 22nd.
Revenue has received hundreds of phone calls since its latest investigation was announced this week. Some estimates have put a figure of €1billion on what these tax evaders could end up paying the Exchequer.