7 July 2014
During May and June of this year, the Irish Central Bank contacted a number of insurers to query certain premium tax returns, such as that for the first quarter 2012, in which the premium reported in respect of the Government Levy was different to the one reported for the Compensation Fund (ICF). These letters are being sent directly to each Insurance company for the attention of the CEO.
FiscalReps recently met with the Irish Revenue, which collects ICF on behalf of the Central Bank to discuss this point. The Revenue confirmed that whilst the tax point for the ICF and the Government Levy is the same (the date on which the premium is received) it acknowledged that differences in the premium amount may arise in the following circumstances:
Where a premium was received in 2012 but the policy was incepted in 2011 only the Government Levy applied as the ICF implementation date took effect from 1 January 2012.
Captives are exempt from the ICF in respect of in-house risks only but not the Levy.