Insurance Premium Tax and the application of technology

Shameera RebelloKPMG in the UK

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23 June 2016

2© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

AgendaThe need for change 1

The challenges associated with obtaining reliable rates2

How KPMG helps to deliver?3

Demo of KPMG’s Insurance Premium Tax (IPT) Reference Point System4

Why chose KPMG’s Insurance Premium Tax Reference Point System?5

3© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Why is there a need for change?

Being compliant is key – But in practice it has proved hard to do

The Market is looking for contract certainty

A common system should lead to accounting for the correct amount of tax

A lot of time and costs are wasted on ‘disputes’

Compliance

Client centricity

Increased profitability and client satisfaction

One common industry system

4© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

What are the challenges associated with obtaining reliable IPT rates?

Local knowledge required to interpret

legislation/case law –Difficult to do

remotely

Different rules and

approaches

Number of countries

and frequency of change

Parafiscal taxes complex

Tax Authorities policy lines are

not part offinance/tax legislation

Cost of gathering high –

No available database of

reliable rates

Different insurance models

need different solutions –This is not just data

State taxes can also exist

Language and cultural

differences

5© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

How KPMG helps to deliver ?

Information gatheringKPMG UK IPT Reference

Point Team

Information review, sign-off from Member

firmand KPMG UK CoE approval

Information released

by KPMG UK IPT Reference Point Project

Manger

Information releasedto 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

6© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

KPMG IPT Reference pointKPMG 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

7© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

KPMG IPT Reference Point: Demonstration of system

8© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Why choose KPMG IPT Reference point?

Compliance

Client centricity

Increased profitability and client satisfaction

One common industry system

Thank you

© 2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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