Extensive knowledge and professional advice
The European insurance market was rationalised back in 1995 with the introduction of the “freedom of services” provisions for the European Economic Area countries. These provisions mean that European insurers are regulated by their own domestic regulatory body in respect of all European Economic Area countries in which they are authorised to write. Attention focused on Insurance Premium Tax (“IPT”) in 2002 following a European Court of Justice ruling that IPT must be accounted for in the country in which the insured risk is located. The regulatory and IPT provisions apply to EU and non-EU insurers alike, including captive insurers. Similar provisions apply worldwide.
Since 2002 European regulators have become increasingly diligent in their enforcement of the provisions, leading insurers to review their compliance procedures. Compliance requirements vary considerably from country to country, as does the type of taxes due. Failure to comply can result in penalties and interest and, in extreme cases, policies can be deemed null and void.
IPT management services
Using our own in-house experts and those in PKF International, our international network of independent accounting firms, PKF Littlejohn provides a cost effective streamlined global IPT management service to ensure that your returns are completed accurately and submitted to your local tax authority on time.
Our technical knowledge of the IPT process and our awareness of the administrative burdens placed on the insurer writing risks across the globe enable Littlejohn to offer a unique service.
We understand that accuracy and awareness of global compliance issues are paramount. With the assistance, experience and immediacy of our fellow members at PKF International, we are able to understand a country's IPT legislation to ensure that compliance is dealt with effectively.
- an insurance company underwriting multi-national risks?
- a broker placing multi-national risks?
- a company whose insured risks are spread throughout different countries? In some countries the responsibility to account for IPT can lay with the insured.
- collect and check the accuracy of data
- provide advice to manage your IPT exposure
- prepare and submit tax returns to the relevant tax authorities through our representatives in PKF International
- manage the payment of tax from client to tax authority.
- a cost effective, streamlined management service for IPT data, regardless of location
- a definitive, relevant and immediate knowledge of a country's IPT requirements through our association with PKF International
- an in-depth understanding of a country's IPT regulations, tax rates and administrative requirements, through communication with our associate members
- advanced planning and an efficiently managed process, which will ensure any potential penalties and interest are kept to a minimum.
- flexibility to your company's individual requirements and a structure relevant to your needs.