European insurer writes cross-border motor insurance into France.
The insurer was concerned that the current fiscal representative did not appear to be reporting the correct French IPT and parafiscal tax rates, which had led to under declarations, penalties and interest payments in the past.
The insurer’s tax team required the assurance and confidence going forward that it was reporting the correct French premium taxes as any future under declarations may have created a difficult on-going relationship with the French tax authorities.
The insurer engaged with FiscalReps who carried out a ‘parallel run’ on the insurer’s French premium tax data.
Discrepancies were identified and resolved by reference to the current legislation, French IPT cases, tax authority guidance and extensive discussions and meetings with specialist tax advisors in Paris.
With regard to this complex area, FiscalReps has arranged a meeting with the French tax authorities to discuss the tax regime in an attempt to simplify the on-going tax compliance obligations of the insurer and those writing similar business.
FiscalReps findings provided the insurer with the rationale to challenge its existing procedures and support a secure methodology going forward.
This shall provide the insurer with the confidence to overcome any concerns in relation to its French motor business. Subsequently the insurer appointed FiscalReps to outsource its French insurance premium tax compliance obligations to FiscalReps team of tax experts, ensuring that the insurer remains in full compliance moving forwards.