OUR SERVICES

LIVA M&A Insurance Services

Tax Insurance

Covers specific tax issues (usually identified in diligence) that fall outside normal W&I coverage.

Insured:

Seller, Buyer or Target.

Policy Period:

Matches the statute of limitations in the jurisdiction in which the risk would materialise, up to a maximum of 10 years.

Cost:

Usually 1.5% – 6% of the insured limit of liability. The premium is a one-off payment at inception of the policy.

Cover:

Insurers cover:

1. Financial loss
(i.e. any additional taxes due) following an unfavourable determination by the tax authority.

2. Legal defence or contest costs in connection with the tax authority’s investigation.

3. Any interest, fines and penalties due (to the extent these are insurable by law).

In certain circumstances, advances payments that may be payable.

Required Documents:

- The background and/or facts which give rise to the identified risk.

- A legal opinion or tax analysis.