Tax insurance is expanding beyond its traditional M&A roots as businesses, investors and advisers look for new ways to manage technical uncertainty, according to Rian Bahia, associate director in Howden’s tax and contingent risk team. 

Speaking to ITR Senior Reporter Sam Sholli on the latest episode of Taxing Times with ITR, Bahia explained how policies can cover known tax risks where a defensible position exists but the potential exposure is disproportionately large.

Bahia also outlined how the product developed alongside warranty and indemnity insurance, which generally covers unknown risks arising from transactions. Potential users now extend beyond private equity and real estate funds to corporates, lenders, insolvency practitioners, hedge funds and pension funds. 

The discussion also explored the wide range of issues that may be considered for cover, including corporate tax, VAT, employment taxes, withholding tax, permanent establishments and tax residence. 

We hope you enjoy listening.