- Aon, RSA, and Zurich amongst 100 companies lobbying for up to a 3 year Brexit transitional period
- ABI pleased that Chair of Treasury Committee has written to the Chancellor over issue of cross-border pensions/insurance contracts after Brexit
- Zurich and MarshMac publish World Economic Forum survey data on major risks
- AIR Worldwide latest estimates of insured losses from Hurricane Irma range from $32bn to $50bn
- CoreLogic estimates losses in US from Hurricane Irma
- Hiscox estimates net claims of around $150m from Hurricane Harvey
- EIOPA publishes its second set of statistical information on the European insurance sector based on Solvency II regulatory reporting expired
- Guidewire solutions implemented at leading Belgian insurer expired
- Allianz names new CEOs for Germany and Italy expired
- MAXIS GBN appoints Director of Underwriting expired
- SCOR sponsored awards presented at 44th EGRIE annual seminar expired
- Xl Group to move principal EU insurance company to Ireland next year in response to Brexit expired
13th September 2017
Insurance Europe responds to OECD discussion draft on its base erosion and profit shifting(BEPS)
Insurance Europe has responded to the Organisation for Economic Co-operation and Development’s(OECD) discussion draft on its base erosion and profit shifting(BEPS) Action 7.
While noting improvements in the revised discussion draft, Insurance Europe’s raised concerns about the attribution of profits to permanent establishments(PEs), because, for some insurance business models, PEs would be recognised for tax, but not for regulatory purposes. This would represent a disproportionate compliance burden for insurers, as well as for tax authorities.
Insurance Europe reiterated that only the presence of key entrepreneurial risk-taking(KERT) functions in a jurisdiction should create a PE for tax purposes and be relevant for the attribution of profits. Insurance Europe added that a definition of PE widened to include intermediaries would result in the creation of a potentially large number of insurance PEs with nil or minimal additional profit being attributed to them.
Insurance Europe warned that the creation of many such PEs with no or minimal profit attributed would create an entirely unnecessary administrative burden for insurers and tax authorities. Therefore, Insurance Europe strongly believes that the final OECD guidance must include an explicit recommendation that jurisdictions should, in these circumstances have administratively convenient ways of collecting the appropriate amount of tax to reduce the compliance burden for both business and tax authorities.
Insurance Europe Trends(107 articles)