Tax Liability Insurance
Often tax laws and how they are interpreted can be uncertain, giving rise to a risk that the tax position taken by a party may be challenged by the relevant tax authority.
The parties in a M&A transaction (and their advisers) may have a different view of the risk of challenge and the quantum may be significant in the overall context of the transaction. Since the tax authority may challenge the tax treatment for a number of years after the event (on certain cases up to 7 years after the underlying transaction has closed), it is not easy for the parties to apportion with this liability in the deal.
DUAL M&A’s Tax Liability insurance provides cover to the insured for the tax liability (plus interest, penalties and advisers costs if there is a challenge) if there is an assessment by a local tax authority.
- 1. Cover for a range of unknown risks and known risks.
- 2. Questions of law and fact considered.
- 3. Bespoke policy drafted to cover the specific tax risk and fact pattern.
- 4. DUAL M&A’s team includes experienced tax specialists from legal and tax advisory firms.