FiscalReps is the European market leader in IPT compliance services and Mike Stalley, the company’s chief executive officer and founder, says: “There is no IPT harmonisation in the European Union, which can make compliance extremely challenging. Each country operates independently, with different IPT rates and compliance requirements, which can vary dramatically. Ireland, for example, has an IPT rate of 3%, Finland’s IPT rate is 23%, and the UK operates with both a standard (6%) and higher (20%) rate.

“Although FiscalReps already offers comprehensive, industry-leading IPT training, not every organisation or individual needs to understand IPT compliance in each separate country. The beauty of these new courses is that they are targeted on a country-by-country basis, which means delegates only need to attend the training sessions relevant to their needs.

“Each event will cover two countries. Delegates will be able to attend the sessions for both countries, delivered in just two-and-a-half hours, or could even choose only to attend for one of the sessions, therefore focusing on a single country. All the courses will be held in London, in the morning.”

The full schedule of countries covered by the new courses is:

• Thursday May 5 2011: France and Germany
• Thursday May 19 2011: Greece and the Netherlands
• Thursday June 2 2011: Spain and Portugal
• Thursday June 16 2011: Italy and Austria
• Thursday September 15 2011: Denmark and Finland
• Thursday September 29 2011: UK and Ireland
• Thursday October 27 2011: Federal taxes in the USA and Canada
• Thursday November 3 2011: Belgium and Luxembourg

Each course will cover all the fundamental principles of IPT, from how the class of business affects rates through to the requirements for local fiscal representation, and from licensing and passporting through to the importance of the location of the risk.

Stalley continues: “No other company offers the IPT experience and expertise of FiscalReps. We’re perfectly placed to share our knowledge with insurance professionals. Delegates at these courses will leave with practical tools for their future work.”

Spaces for all the courses are limited, so anybody wishing to book now should contact Ronnie Wrixon on: +44 (0)20 7663 5672 or by email at: Ronnie.Wrixon@fiscalreps.com.

FiscalReps also offers bespoke training services, delivered in-house to management teams, upon request.

FiscalReps’ chief executive Mike Stalley is urging insurers to beware the complexities of IPT, warning that non-compliance can lead to financial penalties and reputational damage. He will discuss the current position – and solutions to ensure compliance – in a series of free FiscalReps Forums for insurance professionals in Gibraltar, Dublin and Malta during April and May 2011.

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 recent rises in IPT rates in the UK and the Netherlands are likely to be followed by other governments struggling to balance their budgets. With insurance compulsory in many fields and virtually essential in others, tax on premiums is ‘easy money’ for 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 it 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 because it gives 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 potential risks of compliance failure, could prove costly and damaging to an insurer.”

In addition to a detailed update on all the latest EU IPT legislative changes, Stalley will share with delegates to the FiscalReps Forums (Gibraltar April 7; Dublin April 18; Malta May 10) his views on what the future may hold for IPT compliance within the EU.

Furthermore, Professor Joe Bannister, the chairman of the Maltese Financial Services Authority, will be a keynote speaker at the event in Malta.

The programme includes networking opportunities, refreshments and optional demonstrations of FiscalReps’ online software applications taxbox™ and taxDNA™. The FiscalReps team will be available throughout the day for private consultations.

Spaces are limited. To book, contact Ronnie Wrixon on: +44 (0)20 7663 5672 or email at: Ronnie.Wrixon@fiscalreps.com.

Speaking to an audience of more than 100 insurance and tax compliance professionals at FiscalReps’ annual IPT Forum in London last Friday, chief executive Mike Stalley said: “We have seen more IPT increases announced in the past 12 months than in the previous two years put together. For example, in 2011 the UK and Netherlands will increase their rates, while Bulgaria will introduce IPT for the first time. It is clear that many cash-strapped governments see premium tax as an under-exploited revenue source.”

He continued: “Such frequent rate changes make it more difficult for insurers to stay tax-compliant internationally, but governments’ increased interest in IPT makes compliance more important than ever. Germany and the Netherlands are the most vigilant IPT enforcers, regularly initiating tax inspections, but there is no doubt that other governments will follow suit to maximise their revenues.”

In accordance with the European Union’s Freedom of Services principles, a number of countries have recently ended their requirement for insurers to use locally-based fiscal representatives. However, Stalley explained that many of the traditional obstacles to the self-filing of taxes remain in place: “Although some countries are dropping the need for a local tax representative, they are doing little or nothing to simplify their tax-filing processes. As a result, insurers still face a potential minefield if they seek to pay their taxes directly and without an adequate understanding of local requirements.”

Forum delegates heard a vivid illustration of the intensified compliance pressures and challenges facing insurers through an account of the present situation in Greece. George Zafiriou, managing director of Athens-based brokers and IPT filing experts Comergon, explained that Greece’s public finance crisis has transformed the way the country’s government is pursuing tax revenues. He said: “The Greek government has introduced more financial reforms in the past nine months than in the previous 50 years, and they are going with a vengeance after people they believe are not paying taxes correctly.”

However, Zafiriou said that complying with Greece’s notoriously complex tax law and filing requirements remains a huge challenge for the uninitiated. Core to this problem, he explained, is the fact that Greek law was based on the Napoleonic Code and has since evolved in a piecemeal fashion, creating countless inconsistencies and contradictions. He added that further challenges await the unwary insurer through the great number and variety of IPT and indirect tax rates applied within Greece, not only to insurance classes, but also to coverage types within classes. Lastly, Zafiriou explained that the tax-filing process remains extremely labour-intensive, typically requiring a person to queue for meetings with many different tax-receiving bodies. Zafiriou remarked: “The Internet may have reached Greece, but it has yet to make much impact on the way you can file your taxes there.”

John Wallis, credit manager at Travelers, explained to delegates that greater boardroom sensitivity about tax compliance had changed the way the multinational insurer manages its IPT obligations. Wallis said that, following the introduction of the Sarbanes-Oxley legislation in the United States, Travelers felt obliged to undertake a critical appraisal of the IPT compliance process it had developed in-house. As a result of this review, he and his team concluded their system provided inadequate reassurance that the company was constantly on top of the latest changes in national IPT rates and regulations. Wallis explained that, to overcome this challenge, Travelers chose to replace its in-house solution with taxDNA™ software and fiscal representative services from FiscalReps, which enabled the company to fully meet the compliance demands of Travelers’ board.

Lastly, delegates heard independent economics commentator Roger Nightingale give his assessment of the outlook for international economies and trade over the next several years. Nightingale’s entertainingly delivered, if sobering, insights provided a helpful overview of the economic backdrop that may shape insurance decisions in the coming decade.

The Forum, now in its fifth year, has become established as the premier annual gathering for insurance professionals to discuss and learn about the latest tax compliance issues affecting insureds, insurers and brokers.

This year’s event will be held on Friday November 26 at Trinity House, Tower Hill, London EC3N 4DH. Host FiscalReps, the European market leader in IPT compliance services, has secured a line-up of expert speakers from across the industry.

Mike Stalley, FiscalReps’ founder and chief executive, says: “With public finances overstretched in many economies, the UK’s forthcoming IPT rate rises are likely to be just the start of a new period of governmental focus on insurance taxes internationally. The FiscalReps IPT Forum will provide an invaluable opportunity to hear from industry experts on what to expect and how to prepare.”

Stalley himself will introduce the morning by taking stock of the key IPT compliance developments of 2010 and looking forward to what 2011 has in store. In particular, he will discuss the changes to UK IPT that will take effect in January 2011 and the implications of changing fiscal representation requirements in certain international territories.

Economic commentator Roger Nightingale will give his views on the worldwide economic environment in which insurance and tax decisions will be taken in 2011. With economic recovery still fragile, Roger will discuss the risks of another recession and what – if anything – authorities could do to respond. He will also cover issues of international trade and trends in the capital markets.

George Zafiriou, Group CEO of Athens-based international insurance broker Comergon, will use the notorious complexities of Greece’s tax system to illustrate the wider challenges of tax compliance for international insurers.

John Wallis, credit manager at Travelers Insurance, will share insights into how his organisation built a robust system for managing its tax compliance obligations around the globe.

The FiscalReps IPT Forum will begin with registration at 9.00am and finish with a networking lunch, expected to conclude by 1.30pm.

Spaces are limited. To book, contact Gillian Perry: +44 (0)1483 813840, gillian.perry@fiscalreps.com.