GVHR » Topics » If our captive insurance subsidiary is not recognized as an insurance company we may be subject to additional and/or accelerated tax payments.

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

If our captive insurance subsidiary is not recognized as an insurance company we may be subject to additional and/or accelerated income tax payments and/or penalties.

 

When delivering our HR outsourcing solution to clients through a co-employment relationship, we are usually responsible for providing workers’ compensation coverage to our clients’ employees.  Since 2003, a portion of this coverage is arranged through a wholly-owned captive insurance subsidiary (the “Captive”). We recognize the Captive as an insurance company for income tax purposes with respect to our income tax returns.  While we have determined it is more likely than not the Captive qualifies as an insurance company, in the event the taxing authorities were to assert that the Captive does not qualify as an insurance company and were such assertion ultimately upheld, we could be required to make additional income tax payments and/or accelerate income tax payments that we otherwise would have deferred until future periods.

 

If
our captive insurance subsidiary is not recognized as an insurance company we
may be subject to additional and/or accelerated income tax payments and/or
penalties.



 



When delivering our HR
outsourcing solution to clients through a co-employment relationship, we are
usually responsible for providing workers’ compensation coverage to our clients’
employees.  Since 2003, a portion of this
coverage is arranged through a wholly-owned captive insurance subsidiary (the “Captive”).
We recognize the Captive as an insurance company for income tax purposes with
respect to our income tax returns.  While
we have determined it is more likely than not the Captive qualifies as an
insurance company, in the event the taxing authorities were to assert that the
Captive does not qualify as an insurance company and were such assertion
ultimately upheld, we could be required to make additional income tax payments
and/or accelerate income tax payments that we otherwise would have deferred
until future periods.



 



If
our captive insurance subsidiary is not recognized as an insurance company we
may be subject to additional and/or accelerated income tax payments and/or
penalties.



 



When delivering our HR
outsourcing solution to clients through a co-employment relationship, we are
usually responsible for providing workers’ compensation coverage to our clients’
employees.  Since 2003, a portion of this
coverage is arranged through a wholly-owned captive insurance subsidiary (the “Captive”).
We recognize the Captive as an insurance company for income tax purposes with
respect to our income tax returns.  While
we have determined it is more likely than not the Captive qualifies as an
insurance company, in the event the taxing authorities were to assert that the
Captive does not qualify as an insurance company and were such assertion
ultimately upheld, we could be required to make additional income tax payments
and/or accelerate income tax payments that we otherwise would have deferred
until future periods.



 



These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

If our captive insurance subsidiary is not recognized as an insurance company we may be subject to additional and/or accelerated tax payments.

        When delivering our HR outsourcing solution to clients through a co-employment relationship, we are usually responsible for providing workers' compensation coverage to our clients' employees. A portion of this coverage is arranged through a wholly owned captive insurance subsidiary (the "Captive"). We recognize the Captive as an insurance company for income tax purposes with respect to our income tax returns. While we have determined it is more likely than not the Captive qualifies as an insurance company, in the event the taxing authorities were to assert that the Captive does not qualify as an insurance company and were such assertion ultimately upheld, we could be required to make additional income tax payments and/or accelerate income tax payments that we otherwise would have deferred until future periods.

If our captive insurance subsidiary is not recognized as an insurance company we may be subject to additional and/or accelerated tax payments.





        When delivering our HR outsourcing solution to clients through a co-employment relationship, we are usually responsible for providing workers'
compensation coverage to our clients' employees. A portion of this coverage is arranged through a wholly owned captive insurance subsidiary (the "Captive"). We recognize the Captive as an insurance
company for income tax purposes with respect to our income tax returns. While we have determined it is more likely than not the Captive qualifies as an insurance company, in the event the taxing
authorities were to assert that the Captive does not qualify as an insurance company and were such assertion ultimately upheld, we could be required to make additional income tax payments and/or
accelerate income tax payments that we otherwise would have deferred until future periods.





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