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Launched by leading unit-linked fund technology provider, Financial Risk Solutions (FRS), Invest|Tax™ computes tax provisions for unit-linked funds subject to UK I-E tax
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Enables insurers to meet the best standards of TCF and the ABI Guide in tax provisioning for funds
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Ensures maximum accuracy in daily tax calculations and eliminates the need for an insurer to build, manage and support a tax engine
Invest|Tax™ computes tax provisions for unit-linked funds subject to UK I-E (income less expenses) tax, based on full application of the I-E rules. It is an automated solution to tax provisioning for unit funds and also generates corporate tax calculations for a life insurer’s tax returns and financial statements.
Because of the complexity of the UK I-E tax rules generating accurate tax provisions for unit-linked funds is a difficult issue for life insurers, and the full complexity has proved to be beyond the capability of most fund administration systems. Often the system can generate tax data at a security level but doesn’t have the full capacity to utillise this data to generate accurate tax calculations at fund level. Invest|Tax™ is a flexible cost-effective solution which can address this, as well as meeting the best standards of TCF (treating customers fairly) and the ABI Guide in tax provisioning for funds. It also eliminates difficulties from a customer communications and regulatory perspective of having their tax based on a different methodology.
Frank Carr, CMO at FRS says
"We have designed Invest|Tax™ to assist life insurers to meet the best TCF standards for unit-linked tax provisioning. By solving the problem of applying complex I-E tax rules at the unit fund level, Invest|Tax™ also guarantees that insurers maximise consistency with their corporate tax returns, without the need to build, manage or support a tax engine."
Invest|Tax™ can be deployed as an all-in solution with source data at either transactional or security level and the software has already been adopted by a number of life insurers.
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