THE TAX TREATMENT OF INSURANCE UNDER A CONSUMPTION TYPE, DESTINATION BASIS VAT

Vicky Barham; S. N. Poddar; John Whalley

doi:10.1086/NTJ41788655

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THE TAX TREATMENT OF INSURANCE UNDER A CONSUMPTION TYPE, DESTINATION BASIS VAT

Journal article

Peer reviewed

THE TAX TREATMENT OF INSURANCE UNDER A CONSUMPTION TYPE, DESTINATION BASIS VAT

Vicky Barham, S. N. Poddar and John Whalley

National tax journal, Vol.40(2), pp.171-182

06/01/1987

DOI: 10.1086/NTJ41788655

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Abstract

This paper discusses conceptual and practical issues involved in implementing a consumption type value added tax on insurance services. The principal service provided by insurers to policyholders is intermediation in arranging risk pooling. For pure insurance the value of these services is shown to be the difference between premiums and claims. The treatment of life insurance and annuities is somewhat more complicated because they also involve intermediation between savers and investors, besides the pooling of risk. Complications stemming from border tax adjustments and tax rate changes are also discussed.

Credit insurance

Income taxes

Insurance claims

Insurance companies

Insurance policies

Insurance premiums

Life insurance

Sales taxes

Tax policy

Value added taxes

Details

Title: Subtitle: THE TAX TREATMENT OF INSURANCE UNDER A CONSUMPTION TYPE, DESTINATION BASIS VAT
Creators: Vicky Barham
S. N. Poddar
John Whalley
Resource Type: Journal article
Publication Details: National tax journal, Vol.40(2), pp.171-182
DOI: 10.1086/NTJ41788655
ISSN: 0028-0283
eISSN: 1944-7477
Publisher: National Tax Association
Number of pages: 12
Language: English
Date published: 06/01/1987
Academic Unit: Economics
Record Identifier: 9984963438702771

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