The company is required to deduct exit tax on surrenders from Life investment products , in accounts this exit tax is not shown as tax( claims in accounts are shown based on surrender value before deduction of exit tax) as it is not company who is paying the tax but the policyholder , however the company is responsible for taking this exit tax deduction from the amounts paid to policyholder and passing this tax deduction onto the revenue , effectively the company is acting as an agent of the revenue .

Should the surrender value in QRT be net of this exit tax ? In reality what is happening is if the surrender value of policy is €1000 and there is exit tax due to be paid by policyholder of say €100 , then the company will surrender €1000 ( which is shown in accounts as surrender claim) but then will pay €900 to policyholder and €100 to Revenue .”