2010-10-29

By Editor, CIR

Commenting on the ruling by the European Court of Justice (ECJ) that the collection of monthly payments from patients by AXA and their transfer to dentists under the Denplan arrangements is not a VAT exempt financial service, Stephen Morse, tax partner, PwC, said: “[This] unexpected decision creates significant uncertainty. This will throw a spanner in the works for many financial services firms’ outsourcing plans as it has the potential to increase outsourcing costs by up to 20%, at a time when the sector is already under significant cost pressure.

This decision could well make the difference between outsourcing being cost-effective or not.

“The whole financial services sector urgently needs to understand how today’s announcement will impact their existing business models and cost base across the European Union. Firms will also need to closely monitor how different member states interpret and apply this landmark decision going forward,” he added.

Home     More News


Other stories you may find of interest:

Political risks on the rise
Following a year of heightened global political unrest, a new report has identified some of the most significant political risks and investment picks for business and investors.

CBI: Growth accelerates in UK FS sector
Activity in the UK financial services sector grew in the last three months at the fastest rate since June 2007, although this growth was much slower than was expected, a new survey reveals.

2011: A happy new year?
Regulation, climate change, technology risks or political risk...? What will be keeping CEOs awake at night this year? A report just published by PricewaterhouseCoopers predicts the top concerns for the financial services industry throughout 2011.