Tax has always been one of an insurer's most significant expenses, comparable to payroll and claims. CFOs and CEOs have looked to their tax professionals to find ways to manage their tax liabilities, and as transactions and legislation become more complex and sophisticated, so do tax arrangements.
As companies focus on maximising return on equity and managing capital under new solvency regimes, the value that can be created by tax professionals is becoming increasingly recognised and highly prized.
The certainties and demands that have shaped tax management over the past 30 years are being swept aside. What tax teams are required to do, how they do it, who does it and where they do it will all change as a result. The challenges of managing risk and tax costs are heightened by a raft of new tax compliance demands.
Read my quote on pg 22 of today's BusinessDay and the full report by PwC titled "Insurance Banana Skins" via the link below:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.