InterpretationGap® Tax Insurance can reduce or eliminate uncertainty relating to the outcome of one or more tax issues by providing reimbursement for financial loss incurred as a result of a successful challenge by the relevant tax authority.
The product can also be an effective complement to private letter rulings. As private letter rulings are issued in reliance upon representations made in the ruling request, an InterpretationGap® policy can provide a taxpayer with protection for certain representations that it has made in reliance upon statements made by a third party, such as the party that sold the asset or business at issue.
Ambridge Europe GmbH & Co. KG: Read this page in German language
InterpretationGap® Tax Insurance can cover the following components of financial loss:
In addition, to further align the policy with the specific tax issue(s), InterpretationGap® Tax Insurance can be designed to:
Examples of where InterpretationGap® Tax Insurance can be responsive include:
InterpretationGap® is available for specific tax issues that arise in a taxpayer’s ordinary course of business, as well as for general pre-closing tax liabilities in connection with acquisitions.
InterpretationGap® can be purchased before a transaction closes, at the time of transaction, or after close. Common applications include situations in which: