Taxation - Revenue wages war on insurers
The Inland Revenue’s battle against Lloyd’s of London to secure greater taxable profits could escalate into a full-scale war with insurers, industry experts have warned this week.
Only days after Lloyd’s secured a victory against the Revenue at the City General Commissioners tax tribunal over the issue of whether names should be forced to discount their future tax liabilities, Lloyd’s tax department has been told that the Revenue plans to appeal against the decision.
‘The Revenue is going to express dissatisfaction,’ Lloyd’s senior tax manager Nick Godden told Accountancy Age. ‘It will then take the decision about whether to appeal to the High Court.’
CGU’s head of taxation Mark Field said that the Revenue failed in its bid to force discounting on the general insurance industry more than a decade ago, and hoped that this would dissuade the government’s tax arm from trying again.
But recent moves by tax authorities in Germany to introduce discounting for tax purposes has sent shockwaves through the domestic insurance industry in the expectation that the Inland Revenue will target all insurers if it can secure a victory against Lloyd’s.
Field warned this would be disastrous for the UK and the sums at stake would force insurers to launch a defensive attack on the Revenue.
Association of British Insurers head of tax Benedict McHugo said: ‘We would be worried about any prospect of change to the current regulations.’
The numbers you crunch tell a story. Your expertis...
25yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe shift to cloud-based accounting marks a significant transformation, enhancing efficiency, collaboration, and data security, and setting new standa...
View articleOn February 28, Xero became the latest accounting technology provider to launch a new AI assistant. ‘Just Ask Xero’ or JAX was announced a...
View articleThe collaboration between OCR and AI in automating the AP workflow marks a significant stride towards operational excellence. Read More...
View articleThomson Reuters has successfully acquired Pagero, a Swedish e-invoicing and tax solutions company, for approximately $800 million. The content and tec...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleWith so many accounting software options on the market today, from QuickBooks to FreshBooks to Xero, it can be overwhelming for small business owners ...
View articleThe Horizon scandal has shed light on the crucial role of ethical practices in the accounting technology industry, and underscored the need for transp...
View articleAccountants in industry must upgrade wisely to help their businesses evolve, according to Nick Longden of AccountsIQ Read More...
View article