Chubb Tax Approach
UK Tax legislation requires a statement of our approach to UK tax affairs. This document lays out the reasons why we believe we are fully compliant with the legislation and strive to pay the right tax at the right time in the right location.
Approach to UK taxation
The following material is regarded by the Boards of the UK sub-groups and qualifying companies of Chubb as complying with their duty under schedule 19 FA2016 for the financial year ending 31 December 2019. Our approach to UK taxation is consistent across all UK sub-groups and qualifying companies and will be reviewed each year.
Rigorous risk management and governance in relation to UK taxation
Chubb is the world’s largest publicly traded property and casualty insurer, operating in 54 countries and serving a diverse group of clients worldwide. A number of our UK companies are regulated by both the PRA and the FCA. Our businesses are taxed under a number of tax regimes and subject to various taxes.
Risk relating to UK taxation is managed within the wider Chubb risk management framework, the purpose of which is to identify, assess and manage risk. Risk management procedures are continually reviewed, ensuring our controls remain robust and effective.
The Boards are responsible for the management of risk and are advised and supported by the Audit and Risk Committees. The EMEA Head of Tax is responsible for the implementation of the approach to UK taxation.
Commercially driven attitude towards tax planning in respect of UK taxation
Underwriting excellence is a key strategic focus for Chubb; our UK tax approach is aligned with this commercial purpose and in full compliance with UK law and practice. Chubb will use available incentives and reliefs in the manner intended, but will not enter into contrived or artificial arrangements or structures.
External advice will generally be sought in areas of complexity or uncertainty to ensure these areas are fully understood and any required change or update is implemented correctly.
Only a low level of risk is acceptable in relation to UK taxation
Chubb will only accept a low level of risk in relation to UK taxation and uses the above risk management framework to monitor and manage UK tax risk.
Collaborative approach towards dealings with HMRC
Chubb maintains an open and transparent relationship with HM Revenue and Customs (“HMRC”). Where areas of disagreement arise, we will seek early resolution by working constructively with HMRC. However, following internal and external consultation, we are prepared to defend our position where such resolution cannot be reached.
Where possible we work on a real time basis with HMRC to achieve certainty over UK taxation risks.