Insurance Premium Tax and the application of technology. Shameera Rebello KPMG in the UK

Transcription

1 Insurance Premium Tax and the application of technology Shameera Rebello KPMG in the UK 23 June 2016

2 Agenda The need for change The challenges associated with obtaining reliable rates How KPMG helps to deliver? Demo of KPMG s Insurance Premium Tax (IPT) Reference Point System Why chose KPMG s Insurance Premium Tax Reference Point System? 2

3 Why is there a need for change? Compliance Being compliant is key But in practice it has proved hard to do Client centricity The Market is looking for contract certainty Increased profitability and client satisfaction A common system should lead to accounting for the correct amount of tax One common industry system A lot of time and costs are wasted on disputes 3

4 What are the challenges associated with obtaining reliable IPT rates? Number of countries and frequency of change Tax Authorities policy lines are not part of finance/tax legislation Cost of gathering high No available database of reliable rates Different rules and approaches Parafiscal taxes complex Language and cultural differences Local knowledge required to interpret legislation/case law Difficult to do remotely Different insurance models need different solutions This is not just data State taxes can also exist 4

5 How KPMG helps to deliver? Information gathering KPMG UK IPT Reference Point Team Information review, sign-off from Member firm and KPMG UK CoE approval Information released by KPMG UK IPT Reference Point Project Manger Information released to Users Collection, verification and preparation of information Review and reconciliation of queries and sign off of information Releases done on set dates Updated information released Release of information of verified information 5

6 KPMG IPT Reference point KPMG Insurance Premium Tax Reference Point is a central repository hosting transactional tax rate advice applicable on receipt of insurance premiums Broadly, these transactional taxes are: Insurance Premium Tax Parafiscal Charge Value Added Tax Currently, KPMG Insurance Premium Tax Reference Point holds host country advice for over 470 jurisdictions (these include internal states/provinces/territories) Countries 196 Internal states/ provinces 282 Including two observer states and one non-member country Including 40 overseas territories 6

7 KPMG IPT Reference Point: Demonstration of system 7

8 Why choose KPMG IPT Reference point? Compliance Client centricity Increased profitability and client satisfaction One common industry system 8

9 Thank you

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