EUROPE – Indirect tax changes could hit European insurers in 2013

Fiscal Reps’ founder and chief executive Mike Stalley told market representatives: “Since the start of the financial crisis, we have been warning insurers that European govt. would increase their focus on indirect taxation to fund budget shortfalls. Now the promised changes are upon us and in the coming year, we will see significant insurance premium tax and parafiscal tax changes right across the continent. “From January 1 onwards, a swathe of countries will raise indirect tax rates, introduce new taxes or revise laws to increase the size of the tax base. With these changes comes clear evidence of a tightening up of tax revenue collection measures,” he added. “It is imperative for insurance businesses to keep pace with these developments to maintain tax compliance.”