For risk managers whose operations expand into Europe, cultural divides and differing levels of exposures aren't the only issues on their minds in the wake of a court ruling that may drive changes in the way they place insurance coverage.
A European Court of Justice ruling in June 2001–Kvaerner v. Staatssecretaris, referred to as “Kvaerner”–barred corporations from writing all of their European insurance coverage from any European Union country with the lowest taxes simply as a means of avoiding higher taxes in other EU countries where the company in question had significant exposures.
The court ruled that “within the European Union, insurance premium tax (IPT) must be paid in the country where the risk is located, even if the policyholder is a group (holding) company in another country,” according to an analysis from Tax Notes International, a newsletter published by Tax Analysts, a nonprofit publisher in Falls Church, Va.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
