EUROPE

RISKSA Magazine - - International News -

In­sur­ance Europe raises base ero­sion and profit shar­ing con­cerns In­sur­ance Europe re­cently raised con­cerns re­gard­ing the public dis­cus­sion draft on base ero­sion and profit shift­ing (BEPS) by the Or­gan­i­sa­tion for Eco­nomic Co­op­er­a­tion and Devel­op­ment’s (OECD) re­gard­ing strength­en­ing con­trolled for­eign com­pany (CFC) rules. In­sur­ance Europe em­pha­sised that an in­sur­ance in­come in a dif­fer­ent ter­ri­tory to the risk in­sured does not equate to BEPS ac­tiv­ity tak­ing place but rather this oc­cur­rence is a byprod­uct of the glob­al­i­sa­tion of in­sur­ers man­ag­ing risks, in­clud­ing through rein­sur­ance. They also stated that a clearly ar­tic­u­lated pol­icy ob­jec­tive is miss­ing from the dis­cus­sion draft which at­tempts to sat­isfy mul­ti­ple com­pet­ing ob­jec­tives cre­at­ing a set of com­pli­cated – and some­times con­flict­ing – pro­pos­als. Con­cerns were also high­lighted about how the CFC pro­pos­als could po­ten­tially un­der­mine the de­tailed work al­ready done un­der other BEPS ac­tions. In­sur­ance Europe has sug­gested the devel­op­ment of the CFC to deal solely with BEPS is­sues, and noth­ing fur­ther.

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