Insurance Europe has published its response to a consultation conducted by the Organisation for Economic Cooperation and Development (OECD) on the reports on its pillar two blueprint, which aim to create a single set of international tax rules to address base erosion and profit shifting (BEPS).
While the industry acknowledges the policy objectives of the proposed
rules, they remain far-reaching and complex, and would present
significant implementation issues for multinational insurers.
Furthermore, changes are needed to better reflect the insurance
business model. There should, for example, be a carve-out for insurance
and reinsurance services when calculating the effective tax rate.
The OECD should also remove insurance and reinsurance premiums from
the list of BEPS “risk payments”, since it does not reflect the nature
of these businesses, as premium payments do not correlate to corporate
profitability/profit transfer and do not present a greater BEPS risk.
Finally, the industry supports the inclusion of robust dispute
prevention and resolution schemes, to allow settlement within timeframes
that would not hinder businesses.
Full response
Insurance Europe
© InsuranceEurope
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