Tax Liability Insurance

Tax Liability Insurance is a book that examines both the tax liability insurance law and the practice that governs it. Every significant transaction carries tax risk. Tax insurance exists to transfer that risk from the balance sheet to the insurance market. It facilitates mergers and acquisitions, renewable energy investment, and cross-border transactions, and is served by advisors, brokers, and underwriters with deep expertise.

What’s in this book:

Drawing on the law of England and Wales, Ireland, and the United States, the book guides the reader through the full lifecycle of a tax insurance policy. It explains how tax risks are assessed and underwritten, how policies are structured and placed, and how claims are notified, managed, and resolved. Among its areas of focus are the following:

• the principles of insurability, fortuity, and the duty of fair presentation as they apply to tax risks
• the role of tax opinions and opinion standards in underwriting and claims
• tax authority procedures, enquiry windows, anti-avoidance rules, and privilege
• policy terms, including limits, retentions, exclusions, and claims-made triggers
• claims handling, dispute resolution, and subrogation
• the accounting treatment of tax insurance under US GAAP, IFRS, and UK GAAP
• M&A, transfer pricing, and transactional tax insurance
• the digital economy, including BEPS 2.0, digital services taxes, and permanent establishment risk, and energy, infrastructure, and tax credit insurance, including the US Inflation Reduction Act

The book concludes with an analysis of future developments in the market and an example of a non-binding indication.

How this will help you:

Written for tax advisors, insurance lawyers, accountants, specialist brokers, underwriters, and all who negotiate tax insurance policies, the book combines legal analysis with practical guidance on market practice, underwriting, and claims management.