Insurance

Sovereign hit with big tax bill

Friday 27th of July 2012

Justice Robert Dobson found Sovereign had incorrectly treated refundable commissions paid by three German reinsurance companies as income in the 2000 to 2006 tax years.

It treated the repayment of the commissions, plus interest, as expenses.

However, the IRD viewed the commissions as working capital used to help finance the setting up the life insurance policies.

The tax de...

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