Tax Liability Insurance
What is Tax Liability Insurance?
Tax liability insurance is a specialist casualty insurance line that covers the loss from unexpected future tax charges as a result of tax positions or tax treatments being successfully challenged or disallowed by the relevant tax authority.
Tax liability insurance is designed to mitigate the uncertainty relating to the outcome of tax issues by reimbursing financial losses incurred as a result of a successful challenge by a tax authority.
Tax liability insurance is a powerful financial tool that can be used to manage business risks, achieve desired accounting treatments or unlock value for shareholders and financial sponsors.
Why Solertia Insurance?
Specialists
Enhanced Diligence
Experience
Specialisation
Solertia Insurance focuses only on tax liability business as a specialty underwriter and employs one of the most experienced teams in the sector. In total the underwriting team has spent over 80 years in the tax transactional space.
The consequence of Solertia Insurance’s specialisation and wealth of experience is that every transaction is fully due-diligenced and risk assessed to the highest possible underwriting standards.
Proprietary Underwriting Methodology
Criteria Filter
Technical Analysis
Analysis of the fundmantal tax risk to be underwritten utilising the long standing and extensive experience of the Solertia Insurance team.
External Opinion
Informed View
Our access to, and relationships with, senior advisors and law makers close to the relevant tax authority enables us to understand the current sentiment and focus in relation to an appraised transaction.
Solertia Insurance utilises a disciplined 4 stage underwriting process focused on the technical fundamentals of tax legislation, documentation management, superior information and granular risk diversification. This enhanced due diligence when applied by the experienced underwriting team results in a higher standard of underwriting enabling Solertia to look at more complex risks. Only transactions that successfully navigate each stage of the underwriting process will be taken on.
Experience
The Solertia Insurance team comprises a deep tax sector knowledge, collectively having over 80 years experience in executing and advising on a broad range of tax focused restructurings and structured finance transactions with notional transaction values in the tens of $billions.
This does not just mean that the team has been assessing a variety of tax risks in multiple jurisdictions for a very long time but also that they have long standing relationships with some of the most senior and respected tax practitioners in the world.
The broad skill set that resides within the Solertia Insurance team comes not just from prior advisory and transaction based structured finance work but also tax litigation. Each of these is a vital component in minimising the risk in a tax liability business.
A tax liability business covers a huge number of different tax risks in varied jurisdictions. The Solertia Insurance team has experience in fields as diverse as M&A, financial products, renewable energy, real estate and the taxation of private equity, depreciation allowances and renewable credits.