Corporate finance › Tax Opinion Liability
Tax Opinion Liability insurance protects the insured against an assessment to pay tax to a relevant authority where the assessment has been made during the limitation period following:
- A merger or acquisition or listing on a Stock Exchange
- Specific Tax planning in accordance with professional advice
- A restructuring or reorganisation within one or more companies in the same group, also in accordance with professional advice.
Policy Cover
- Assessment of tax due
- Interest payments
- Fines and Penalties
- Costs and Penalties
Points to Note
This type of insurance is complex and will not cover certain aspects, notably:
- Tax rate changes alone
- Tax mitigation investment products
- Limited partnerships of individuals
- Transactions with no other commercial purpose than to create a tax advantage
- Transactions already being reviewed by the tax authorities or where notice to review has been given