Tax Insurance
Unlock seamless M&A transactions with our tax insurance solutions! We specialise in identifying and isolating potential tax concerns early on, ensuring your deals progress smoothly.
Coverage we offer
What is tax liability insurance?
Navigating the intricate world of mergers and acquisitions (M&A) can sometimes bring surprise tax liabilities that might complicate or even halt deals, adding unforeseen expenses.
That’s where effective tax liability insurance comes into play, serving as a strategic safeguard. It offers you peace of mind and financial security by protecting against tax-related risks in your M&A transactions.
Tax Insurance Team
How we can help you
Tax insurance provides a tailored, cost-effective solution to protect against possible tax liabilities. It’s not just handy for transaction-related tax risks but also for everyday business uncertainties, reorganisations, sell-offs, or previous tax choices.
Should tax authorities challenge and confirm a tax issue, causing financial strain, tax insurance steps in to cover these losses and associated costs, all through claims with an ‘A’ rated insurer.
Additional benefits
Tax Insurance FAQs
Tax insurance for M&A transactions is designed to address tax risks that are identified during the deal process when neither the seller nor the buyer wants to, or can, assume the risk. This type of insurance is secured to eliminate the necessity for sellers to allocate funds into escrow, providing a more streamlined solution for handling tax-related uncertainties in M&A deals.
The process usually takes place over a 2-3 week timeframe from enquiry to policy binding, but this is contingent on having requisite tax analysis from reputable advisors. Engaging early in the process with detailed tax analysis is recommended to align the insurance with transaction timelines efficiently.
The cost of the policy would include a one-off premium which is based on a percentage of the policy limit, however, rates may vary by risk and territory.