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.

Highlights:

  1. 1. Cover for a range of unknown risks and known risks. 
  2. 2. Questions of law and fact considered. 
  3. 3. Bespoke policy drafted to cover the specific tax risk and fact pattern.
  4. 4. DUAL M&A’s team includes experienced tax specialists from legal and tax advisory firms.