Risk management in main risk types

Taxation risk

Taxation risk is the risk that the group will incur a financial loss due to an incorrect interpretation and application of taxation legislation or due to the impact of new taxation legislation on existing business.

During the development stage of any new product and prior to any corporate transactions the taxation resources of the group, and if required external resources, identify and advise on any potentially material taxation impact.

Proposed new taxation legislation is researched fully by the legal and taxation resources to identify any potential impact to the group and where appropriate representation is made to the relevant government minister, including lobby groups, to assist in ensuring the fairness of new taxation legislation.

Taxation risk is further mitigated through contract and policy terms and conditions which, in most instances, enable the risk to be passed back to the customer.