Speaking at the Captive Live USA conference in Chicago, Stalley said: “US-domiciled captive insurers frequently cover risks located overseas. However, some US captives still fail to tackle insurance premium tax compliance as rigorously abroad as at home, which could prove a very costly error.

“Maintaining tax compliance in a global insurance programme can be challenging. Tax legislation varies from country to country, but many insurance service providers are reluctant to give captives tax advice. As a result, US captives have to adopt a global view for their own protection.

“The current economic climate means governments are increasingly seeking to generate additional tax revenues through IPT to help balance their books, and the ever-changing situation globally means captives based in the US require accurate and up-to-date information from around the world.

“The key to premium tax compliance is the ability to gather, analyse and process reliable premium tax information on an international basis. At FiscalReps, we have developed a unique global premium tax database, which relies on our ability to gather reliable premium tax information from multiple sources.”

Stalley says US captives need to adopt a similarly co-ordinated approach for their global compliance plans. If the basic information is accurate, he argues, the ability to identify the location of risks and apply the relevant tax legislation can be more effectively achieved.

Stalley says there are also very positive reasons for US captives to pay attention to IPT compliance. “With the rates of premium taxes exceeding 10% in many territories, global premium tax costs can easily become material to the overall cost of buying insurance,” he says. “Getting premium tax calculations right could save your business money.”

Mike Stalley, chief executive of FiscalReps, says: “The new law has been passed by the Greek Parliament and provides for the second penalty amnesty this year. Penalties will be waived on any outstanding Greek IPT due on premiums invoiced up to August 22 2011 if the relevant amounts are declared and paid in full by September 30 2011.

“There is also the option to pay the tax amounts in instalments. In that case, the tax return must still be filed by September 30 2011 but the payments will be spread over six equal monthly instalments, starting on September 30. If the option to pay in instalments is taken up, unpaid taxes that were due before December 31 2009 will be subject to a 10% penalty, and unpaid taxes due between January 1 2010 and August 22 2011 will be subject to a 3% penalty. If the instalment amount is less than €300, there is no option to pay in instalments.

“It is not clear if TEO (Road Tax) and Motor Guarantee contributions are part of the amnesty, but we have had confirmation that the TEEA PAE (Pension Fund) is not.

“IPT is a complex area, but with the September 30 deadline, time is of the essence here. FiscalReps will be delighted to help any companies in need of rapid assistance.”

FiscalReps’ chief executive officer Mike Stalley is warning that, despite changes to IPT compliance requirements designed to simplify procedures, IPT remains a major challenge for insurers throughout the European Union (EU). Non-compliance will potentially lead to financial penalties and reputational damage.

Stalley will discuss the current position – and solutions to ensure compliance – at the free FiscalReps briefings, which are aimed at insurance professionals, and will be hosted in Denmark (September 21) and the Netherlands (September 22).

Stalley says: “The key trends are governments’ increasing focus on IPT as a source of revenue and the EU-inspired abolition of compulsory local fiscal representation.

“The rises in IPT rates in the UK and the Netherlands this year are likely to be followed by other governments. With the increasing focus on indirect taxation, tax on premiums is inevitably attractive to revenue authorities, especially in today’s difficult economic climate. Revenue authorities across Europe are becoming increasingly vigilant and, as a result, compliance failures are more likely to be spotted – and penalised.

“The need to appoint a local fiscal representative in each jurisdiction has often been regarded as an unnecessary burden to tax compliance and the European Commission now considers this requirement a breach of EU competition legislation. The UK, Belgium, France, Italy and the Netherlands have already dropped the requirement for IPT payment through local fiscal representatives and other countries are expected to follow.”

However, Stalley says the current position is deceptive, potentially giving the impression insurers can safely avoid local fiscal representation where no longer a legal requirement. “IPT is extremely complex and specialist assistance based on expert local knowledge is vital for achieving trouble-free compliance in every jurisdiction. Alternative arrangements, with risks of compliance failure, could prove costly and damaging to an insurer.”

In addition to a detailed update on all the latest EU IPT regulatory changes, Stalley will share with delegates at the briefings his expert views on what the future may hold for IPT compliance within the EU.

For further information, please visit: www.fiscalreps.com.

Chater will provide insurance tax advisory services to FiscalReps’ extensive international client list, which includes insurers, brokers and corporate captive owners.

Chater says: “FiscalReps is working on a range of new and innovative indirect tax advisory solutions for the insurance industry. I’ll be spearheading the delivery of these products into the marketplace.”

A well-known and highly-respected specialist in the field of IPT, Chater joins FiscalReps from his position as an indirect tax manager in KPMG’s Insurance Group. He also brings a wealth of experience from previous senior positions in industry and HM Revenue & Customs (HMRC). Chater is a qualified indirect tax practitioner and member of the Institute of Indirect Taxation.

Chater continues: “The opportunity to join a fast-growing, successful specialist tax business like FiscalReps, at such an exciting time, was too good to miss. Global tax compliance requirements are changing constantly at present. The insurance industry needs continuous access to reliable, up-to-date information and expert advice. Specialist assistance is vital for achieving trouble-free compliance in every jurisdiction. I’m looking forward to driving the growth and development of tax advisory services within FiscalReps.”

Mike Stalley, FiscalReps’ chief executive officer, adds: “We are delighted Paul has decided to join FiscalReps. His extensive knowledge and experience of the indirect tax challenges facing the global insurance industry are valuable additions to the business.

“In the continuing global financial crisis, premium tax legislation remains subject to much scrutiny and change. For FiscalReps to remain the premium tax advisor of choice for many of the industry’s largest players, it is essential that we continue to invest in developing and recruiting experienced, qualified tax professionals who can provide industry leadership in the area of global premium taxes.”