Taxing Insurance Products: Travel Insurance Peter Hewitt FTII Head of European Tax Practice, FiscalReps Beverleigh Gunner Client Manager – European Tax.

Slides:

Advertisements

Similar presentations

The Fundamentals of Insurance Ch.32 – South Western 1997.

Advertisements

How Does an Umbrella Company Work? By planIT Solutions Limited.

Revenue Ruling , issued April 1, 2009, effective August 26, 2009 AND Revenue Ruling , Issued May 1, NEW RULES ON TAXATION OF THE SALE.

Bookkeepers’ Club Tuesday 4 th December 2012 Presentation by Peter Brassington.

AATS LLC Accounting and Tax Solutions The Mortgage Forgiveness Debt Relief Act of 2007 and The Housing and Economic Recovery Act of 2008 Alan Yee Tax Partner.

McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

Methods of payment on business trips From booking flights and accommodation to paying for meals, there are a variety of different payment methods available.

1 Friends Life Protection Account Business Protection Key Person and Loan Protection This item is directed at professional advisers only and should not.

Builder’s Risk - Claim Adjustment Challenges

© 2004 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 15 Leases.

Slide 5A.1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. An Introduction to Object-Oriented Systems Analysis and Design with.

1 Chapter 9 - Insurance Purpose – protect against catastrophes Risk pooling and diversification Policy – a contract with an insurance company –Losses covered,

Corporate & Partner Tax Instructor: Dwight Drake ```````````````````````````````````````````` ```````````````````````````````````````` Payments for Services.

Chapter 4: Insurance Company Operations

Discounts An explanation of discounts and the implications to tax.

1 Your Life Insurance Needs. 2 The major purpose of life insurance is to provide financial security for dependents in the event of death. Here we want.

McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. LEASES Chapter 15.

The Adjustment Process Accountants need to ensure that the statements they produce are: Up to Date, Accurate, Consistent Adjustments are necessary to.

8 - 1 The Employer’s Tax Responsibilities: Principles and Procedures Chapter 8.

Nokian Tyres Transfer Pricing Case

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Monday, May 2, 2011 W-10 Clarification of Rules and Regulations Presenters: Steve Van Dyke, Tyrone Gregory & Carleathea Greenhill Facilitator: Corise Morrison.

Chapter 22: Accounting for Leases

UGANDA LEASING ASSOCIATION ACCOUNTING AND TAXATION OF LEASING TRASACTIONS BY: IRAGUHA ADAD DATE:17 th June,2015.

Treasury Management Software Reporting Discounts and Premiums CMTA Education Conference Cal Poly, Pomona September 28-30, 2010 Peter Bakonyvari Director.

Accounting for VAT Chapter 7 © Luby & O’Donoghue (2005)

Creating a Worksheet.  The length of time for which a business summarizes and reports financial information is called a fiscal period (also known as.

Introduction to Business Professional Historians Assn 11 October 2008 Presented by John Forde Business Tax Information Officer.

Bernice S. Ofosu-Baadu Ghana statistical Service EN/ADM/2014/Pres/21.

Auto Insurance Information Mr. Blais Law and You.

10/22/2015NJ Training TY Capital Gains & Losses (Including Sale of Home) Pub 17 Chapters Pub 4012 Tab 2 Module NJ 1.10.

©OnCourse Learning. All Rights Reserved.. Issues in Home Ownership ©OnCourse Learning. All Rights Reserved. Chapter 5.

Taxable Income from Business Operations

Ias 2 Inventories 1-Scope This Standard applies to all inventories other than Work in progress under construction contracts and directly related service.

National Conference for Insurance Managers in Higher Education April 2008 Joseph Higgins Head of Corporate Valuations.

4 Life business, embedded value and analysis of change Johan Daemen General Manager, Life insurance Foto gebouw.

Worksheet for a Service Business

Insurance coverage solutions designed specifically for your business. Available for Travel Agents, Tour Operators and Internet Booking Engines. Errors.

Chapter Objectives Be able to: n Apply the factors that will be considered when determining whether an individual is considered employed or self-employed.

Real Estate Principles and Practices Chapter 16 Investment and Tax Aspects of Ownership © 2010 by South-Western, Cengage Learning.

FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc Payroll Guide, 7326 Sick Pay A. The Purpose of This Policy The purpose of this policy is to.

This module gives an overview of some complex debt issues and some tools by which to deal with them. It draws from web sources – please note these down.

Types of Insurance Essentials Economics Review: What is Insurance? Risk is the uncertainty about a situation’s outcome- may be an unpredictable.

INSURANCE VOCABULARY BY: CECILY DUNLAP. CLAIM – Insurance Claim: A formal request to an insurance company asking for a payment based on the terms of the.

Technical Tax Masterclass: Historical Tax Settlements Christophe Bourdaire Client Manager – European Tax Practice, FiscalReps Nazaret Gonzalez Client Manager.

Technical Tax Masterclass: Claims Costs and VAT Peter Hewitt FTII Head of European Tax Practice, FiscalReps.

Taxing Insurance Products: Property Insurance Susie Crew FCA Client Director - European Tax Practice, FiscalReps Nazaret Gonzalez Client Manager - European.

Module #4: Insurance. Risks O Risks come with every decision made in life. O Risks can be preventable, avoidable or completely unforeseeable. O Risks.

Taxing Insurance Products: Sickness and Health Insurance Paul Chater Client Director, European Tax Practice, FiscalReps Christophe Bourdaire Senior Client.

Changes to Taxation of Contractors Freephone | |

Tax Considerations in the Global Environment: Life Assurance Paul Chater Client Director – European Tax Practice, FiscalReps Joseph Finbow Senior Client.

- Special Education Needs (SEN) Network Administrative and Financial Aspects.

F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.

Taxing Insurance Products: Motor Insurance Joseph Finbow Senior Client Manager – Captive Practice, FiscalReps Alessia Mecozzi Client Technician – European.

Basic Principles of Insurance Finance Investment Income (Income) Intt-Shareholders Fund (Income) Intt-PolicyholdersFund (Income) Underwriting Profits.

Accounting November 7, 2014 Begin Chapter 6 notes WT/OYO/Application for 6-1 and 6-2.

Today’s Target!  Fri., Oct. 9 th  Students will set up the work sheets for accounting cycle end Agenda  Start Chapter 6 Guiding Question:  “How do.

Insurance Accounting Overview

Time and Value of Supply

Introduction to Business Expenses

SEMINAR ON GST LAW VALUATION

© National Core Accounting Publications

VAT IN THE FINANCIAL SECTOR

Section 1 Identifying Accounts To Be Adjusted and Adjusting

Understanding Types of Insurance

INCOME STATEMENT INFORMATION ON A WORK SHEET

Business Income Coverage and Extra Expenses

© OnCourse Learning.

Quantum Underwriting Solutions Working in partnership to deliver outstanding client service 2019.

Presentation transcript:

Taxing Insurance Products: Travel Insurance Peter Hewitt FTII Head of European Tax Practice, FiscalReps Beverleigh Gunner Client Manager – European Tax Practice, FiscalReps

Agenda Overview Problematic areas Country specific examples Questions

Overview As a product it can often consist of multiple coverages, such as: Cancellation of travel or of accommodation arranged in connection with travel Delayed or missed departure Curtailment of travel or of the use of accommodation arranged in connection with travel Loss or delayed arrival of baggage Personal injury or illness or expenses of returning home Travel is not a defined class in most territories

Problematic Areas Location of Risk The Location of Risk changes depending on the length of a policy. Duration of four months or less - the location of risk is determined by where the policyholder took out the policy Duration of over four months, the location of risk changes to the habitual residence

Problematic Areas Apportionment In some countries travel insurance is taxed at a specified rate, on the ‘predominant supply’ basis In others, some form of ‘hybrid rate’ may be required based on an apportionment of the premium to the different component classes Apportionment rules vary, but the main theme is that they are justifiable and reasonable Apportionment

Problematic Areas Tax Points To determine when the tax is due for settlement it is necessary to determine the tax point date of the insurance transaction The tax point date will determine the date that the tax must be recorded in the books of the insurers and the date that the tax is due for settlement Again, each country has different rules on application of the tax point date Multiple tax point dates can cause significant internal accounting problems so again a practical solution must be found to manage this Tax Points

Inclusive/Exclusive Tax Base Inclusive/Exclusive Basis If the premium is not shown on the invoice, the Italian tax authorities may argue that the premium taxes should be applied on the gross rather than the net premium This calculation would increase the tax and lower the premium each insurer receives Inclusive/Exclusive Basis

Inclusive/Exclusive Tax Base Gross Premium:EUR 1, Net Premium: EUR 1, IPT Rate: 21.25% IPT: EUR The Italian authorities may request that the IPT should be calculated on the gross premium IF the net premium and IPT values are not shown on the invoice. Gross Premium: EUR 1, Net Premium: EUR 1, IPT Rate: 21.25% IPT:EUR Difference of EUR Gross Premium:EUR 1, Net Premium: EUR 1, IPT Rate: 21.25% IPT: EUR The Italian authorities may request that the IPT should be calculated on the gross premium IF the net premium and IPT values are not shown on the invoice. Gross Premium: EUR 1, Net Premium: EUR 1, IPT Rate: 21.25% IPT:EUR Difference of EUR 45.16

HMRC and Travel Insurance HMRC and Travel Insurance - Standard rated or higher rated? When the higher rate was introduced, it only applied to travel insurance (excluding free travel insurance) when sold by: A travel agent or tour operator; or A person connected to a travel agent or tour operator; or A person paying all or part of the premium, a related fee or commission to a travel agent or tour operator Since 1 August 1998, the scope of the higher rate was been extended to include all taxable travel insurance (including free travel insurance) HMRC and travel insurance - standard rated or higher rated?

HMRC and Travel Insurance However… Only insurance policies specifically regarding travel should be taxed at the higher rate. There are some policies which have an incidental travel insurance element such as household insurance covering loss of personal property outside the home. You could argue that these be apportioned between the higher and standard rates but these are not normally seen as a travel policy and therefore, standard rated.

Questions