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Tax Insurance — As Good as an Indemnity?

Iain Scoon, partner, Shearman & Sterling (London) LLP, and Stephen Pevsner, discuss the recent phenomenon of using insurance to protect against tax risks in M&A deals

 
Iain Scoon partner Shearman & Sterling (London) LLP and Stephen Pevsner discuss the recent phenomenon of using insurance to protect against tax risks in M&A deals
 
The idea of using insurance to protect against tax risks in mergers and acquisitions (M&A deals) is one which has been mooted over the past few years but to our knowledge relatively little used. Recent experience and contact with insurance brokers and underwriters involved in the tax insurance sector point to this position changing with the capacity in the insurance market willing to take on tax risks apparently increasing. This article looks at how tax insurance...

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