Tax Liability Insurance

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Bespoke cover that provides more than risk transfer

In complex transactions, specific tax issues can introduce substantial financial risk if a tax authority challenges your position. Our Tax Liability Insurance provides tailored protection for identified tax exposures, enabling businesses to proceed, even when difficult tax questions arise. By covering potential liabilities, Toremis Specialty offers you a clear financial path forward, reducing the need for capital reserves and preventing the price chips often sought by buyers in the face of tax uncertainties.

Comprehensive Protection for Common Identified Tax Risks

Our Tax Liability Insurance is crafted to address a wide range of identified tax exposures that commonly arise in transactional settings, including:

  • Participation Exemption

  • Asset vs. Business Categorization

  • Residency Issues

  • Debt for Equity Swaps

  • Real Estate Tax issues

  • Tax-Exempt Demergers

  • Withholding Tax on Overseas Dividends and Interest

  • Tax Credit Recapture Events

By addressing these specific risks, our policies facilitate effective transaction completion, while mitigating identified tax uncertainties.

Key features

  • Each policy is structured to address specific risks, offering precise and targeted cover.

  • Can include coverage for tax liabilities, gross-up provisions, insurable civil penalties, defence costs, and advance payments.

Who benefits

Investors and Private Equity Firms:

Those involved in transactions where identified tax exposures may impact valuation or returns.

Corporates:

Businesses undergoing restructurings, M&A, expansions, or complex transactions with nuanced tax positions.

Legal and Financial Advisors:

Lawyers and finance professionals seeking predictable tax outcomes to support their clients’ strategic goals.

With Toremis Specialty, you gain a strategic advantage by addressing identified tax risks efficiently, ensuring stability, and transforming tax uncertainty into a manageable exposure.

If you need any assistance, feel free to get in touch.