Euro tax authorities eye IPT

Insurers providing multi-national risk coverage across Europe are now attracting the interest of local tax authorities, who see Insurance Premium Tax as their newest ‘soft’ target. Richard Asquith, from TMF, takes a look at what tax authorities have been doing to catch-out unsuspecting insurers, and how European IPT works.

Since the inception of the EU’s Freedom of Services provision, insurers – and especially underwriters – have been lured by the opportunities of opening up in new, foreign markets. Even for the reluctant there is no hiding as clients have been forcing the pace by demanding multi-jurisdictional policies from their provider, or else. Insurers have been queuing up to apply for the necessary Passporting Rights – just look at the Italian ISVAP website to see the regular additions of foreign insurers gaining Italian authorisation. So far, so good. Open, competitive markets; we all like those.