Explaining the reasoning behind the investigation, Mr Daly announced that:

"Based on intelligence gathered from a number of sources, including the Bogus Non-Resident Accounts Investigation and Offshore Assets Group investigation clear indications emerged of the use of these insurance products for the purposes of tax evasion. We formed a strong view that a considerable number of individuals had funded such investments using untaxed income or gains not previously disclosed to Revenue and that this practice had continued over many years."

He went on to add that:

"We decided to advance this inquiry in two stages using a similar model to that which was successfully used in the Bogus Non-Resident Account and Offshore Assets investigations."

"In the first stage (the Voluntary Disclosure stage) taxpayers, who invested undisclosed and undeclared funds in life assurance products were given until the 23rd May 2005 to give notice to Revenue of their intention to make a disclosure. This part of the disclosure stage has now been successfully completed and about 10,000 persons have notified Revenue that they may have tax issues. Those who have such tax issues and who opted for the voluntary disclosure route have until 22 July 2005, to pay their outstanding liabilities. I should add that a further 2,000 persons wrote to Revenue during the voluntary disclosure period to say that while they did purchase such products, they have no outstanding tax issues in relation to them."

"In the second stage (the Follow Up Investigation stage) which effectively commenced immediately after the May deadline had passed, Revenue has now commenced the business of identifying all those who used such products for tax evasion but did not make voluntary disclosures. As part of this process Revenue has already contacted and met with representatives of a number of life assurance companies in relation to the new sampling powers provided in the Finance Act 2005. The remaining companies will be contacted in due course. At all times the Irish Insurance Federation has given assurances to the Revenue representatives that the industry will fully co-operate with the Revenue investigation as the law requires and this has been the experience to date."

The Revenue Commission chairman revealed that as of Thursday morning, €106m had been paid by 1972 taxpayers as part of the Voluntary Disclosure phase. He observed that:

"It is not possible right now to estimate what the ultimate yield will be from this Voluntary Disclosure phase of this investigation - this will only become clear in the next week or so. Still less, is it possible to estimate the yield that will result from the second phase of this investigation as we deal with those who have liabilities but did not avail of voluntary disclosure."