David Jetuah, Accountancy Age, Thursday 26 August 2010 at 09:56:00

UK insurers fear being hit by costs amounting to millions if stringent newtax proposals are endorsed in the United States

Financial services companies are bracing themselves for the impact of a newtax evasion clampdown being finalised in the US which could cost millions.

The US Treasury is shaping plans to make banks, hedge funds, and insurersworldwide surrender up to five million account details in efforts to foil taxevasion.

The move has generated criticism from insurance industry representatives,because of the potential cost of overhauling information systems.

Peter Vipond director of taxation at the Association of British InsurerstoldCity AM: "UK insurers represent no significant risk to US tax revenues andwe are keen to avoid unneccessary and onerous costs on the industry that willultimately be borne by all policyholders."

Further reading:

USTreasury defends Obama tax reform plans