MS Amlin is part of MS&AD Insurance Group Holdings Inc. and has material operations in the UK, continental Europe and Bermudian markets. The group operates in both the Lloyd’s and non-Lloyd’s market. MS Amlin operates through three Business Units covering the Property and Casualty, Marine and Aviation and Reinsurance markets.
MS Amlin’s tax strategy is
- To satisfy all tax compliance obligations within the relevant statutory timeframe and in compliance with the relevant tax law, disclosure requirements and regulations;
- To complete accurate tax reporting on at least a quarterly basis to allow a detailed understanding of MS Amlin’s effective tax rate as well as the tax balances in the balance sheet;
- To develop and maintain good working relationships with all tax authorities in jurisdictions where MS Amlin has a legal presence and with other external stakeholders including regulatory authorities and Lloyd’s;
- To contribute to shareholder returns on a sustainable basis by organising its tax affairs efficiently within the letter, and spirit, of the laws of the territories in which it operates; and
- To ensure its tax team is pro-actively involved in developing tax legislation and lobbying for changes that promote both the interests of MS Amlin and the wider Insurance/Reinsurance industry.
MS Amlin seeks to safeguard shareholder interests as well as maintain its integrity, reputation and brand with its external stakeholders including investors, governments and customers at all times.
Ultimate responsibility for MS Amlin’s tax strategy and compliance rests with the Board of MS Amlin, however day-to-day management is delegated to the Chief Financial Officer and the Head of Tax.
Management of tax risks
MS Amlin faces similar tax risks to other multinational groups operating in the insurance market including cross border tax risks.
- MS Amlin operates a system of tax risk assessment and has appropriate controls in place to ensure tax risks are identified and mitigated in a timely fashion. The tax team assess quarterly whether the controls are functioning effectively and whether the designs are fit for purpose.
- The tax team has corporate tax compliance and advisory, VAT and employment tax specialists in the UK and the Netherlands to ensure all applicable tax risks are identified and appropriate action taken by skilled members of staff. Staff are appropriately trained and there is focus on continuous development of tax knowledge.
- In other jurisdictions, the tax team will engage external advisors to prepare and submit all tax returns. No tax returns or payments will be filed without prior approval from the tax team.
- The tax team works with the business to educate staff about the importance of involving the group tax team before undertaking commercial transactions, to ensure any tax risks are identified and appropriately dealt with.
- The Board has oversight on tax matters and is briefed on key tax developments and tax impacts of commercial transactions when deemed appropriate by the Head of Tax.
- MS Amlin is committed to preventing persons associated with it from engaging in criminal facilitation of tax evasion and where possible, has procedures in place to identify and mitigate risks of facilitating tax evasion.
Attitude to tax planning
MS Amlin’s policy is to pay the right amount of tax as required by local tax laws in each jurisdiction.
- MS Amlin aims to undertake all tax planning within the context that the commercial needs of the Group are paramount. However, where alternative routes exist to achieve the same commercial result, the most tax efficient route which is in line with and in the spirit of tax legislation should be recommended.
- Managing tax efficiency involves choices as to the jurisdictions in which to locate capital and/or business activity and the legal structure of that activity. Such choices take account of all business and regulatory consequences of operating in such a manner.
- Where the MS Amlin tax team deems there is insufficient technical expertise within the group (for e.g. entry into a foreign market), external tax advice is sought.
Relationship with tax authorities
- MS Amlin seeks to have a constructive and transparent relationship with all tax authorities through communication in respect of developments in MS Amlin’s business, current, future and retrospective tax risks, and interpretation of the law in relation to all relevant taxes.
- Where possible, tax authorities are regularly updated on significant business developments or matters that could involve a number of interpretations of tax legislation.
- Where relevant, MS Amlin discloses all uncertain tax positions and rationale for adopting treatments in the tax computations submitted to relevant tax authorities.
- This is an internal tax strategy that is circulated and confirmed as read by relevant areas of the business. This strategy is available on the intranet and is regularly refreshed.
The group regards this strategy as complying with paragraph 16(2) of Finance Act 2016.
This strategy is confirmed by MS&AD Insurance Group Holdings Inc.