Jethro Tull
Registered User
- Messages
- 262
Are you sure? Isn't it a case of the consumer getting tax relief at source on the gross premiums paid. Where there is no premium paid such as where the underwiter offers free cover there is presumably no tax relief.Health insurers then get the tax relief from the revenue as the rest of the actual (gross) health premium.
You are assuming that QL are somehow grossing up the €300 to €375 ((€300 / 8) x 10) by claiming €75 tax relief in respect of that granted to the customer on the premium even though this premium of €300 was not actually paid because it was a freebie. I very much doubt that they are doing this. Why do you think that they may be? It's a very serious issue to be insinuating that a named company may be engaging in tax evasion/fraud so you would want to back this up with some hard evidence before going any further with it!What I'm trying to say is that the bottom line is that the tax relief on the premium is being used by Quinn to cross subsidise his household insurance book.
Clubman I think you are missing the point. Quinn are bundling free home insurance with a product where tax relief is available. They can increase the medical insurance premium to compensate for revenue lost on the household side, effectively using tax relief one product to subsidise the cost of the other product.
I think Quinn are ok on two counts
- it's clever tax planning to exploit this loophole (avoidance not evasion)
- their medical premiums are still cheaper than competitors, so they aren't gaining an unfair competitive advantage
Yes - I did miss that point - I thought that it was free health insurance for taking out home insurance and not the other way around! Apologies.Clubman I think you are missing the point. Quinn are bundling free home insurance with a product where tax relief is available.
I thought that private health insurers had to get permission from the HIA or Minister for Health before changing (increasing?) their prices?They can increase the medical insurance premium
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