Taxpayers are always at risk of historic tax exposure even years after filing, often arising because of the ambiguity and complexity of tax regulation. The consequences can be unpredictable and have a significant impact on business.
Whether as part of an M&A transaction or for separate stand-alone transactions or operational frameworks, tax risk insurance helps mitigates the liability of unforeseen tax exposure resulting from former investments or business activities. Its purpose is to provide protection against unforeseen tax liabilities, including interest, penalties and defence costs.
We are thoroughly prepared to provide the optimal solution for each case; backed by our expertise and experience, having worked in tax departments of reputable accounting and law firms in the past.
We believe that every tax risk is unique and requires its own approach. Transact provides hands-on, innovative and tailored tax risk insurance solutions, removing uncertainty and getting the deal done.
how can we help
Worldwide coverage of tax risks to be considered
Coverage limits of up to €20m / £20m or local currency equivalent
Non-standard tax risks can be considered
Broader annual policies available for certain tax frameworks (i.e. substance, transfer pricing documentation etc)
Existing tax analysis is not a requirement for consideration
Coverage may include attached expenses (defence costs in the form of advisor fees), interest and penalties, advance tax payments
Benefits Of USING A Tax Risk Insurance Policy
Enables more efficient M&A negotiations by eliminating tax liability allocation discussions
Facilitates seller’s exit by eliminating the need for indemnities and/or escrows to protect against historic tax exposure
Reduces overall liability risks for the insured, counter-parties and advisors through policies structured for limited recourse or subrogation rights
Eliminates potential transaction delay or non-availability of advance rulings on identified tax matters
Reduces certain liabilities prior to an IPO, trade sale, or as part of a general balance sheet clean up.
The possibility to secure your tax function by insuring a certain tax framework on a look forward basis. This can include master transfer pricing documentation, the residency or substance of an entity, a particular VAT treatment, certain debt or equity classification, etc.