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RSA takes advantage of lower Irish tax rates (Irish Independent)

04 November 2011
INSURANCE Group RSA has become the latest major UK firm to consider moving its tax domicile to Ireland in order to take advantage of favourable rates here.

The company has established an Irish subsidiary that can write insurance and reinsurance business in Britain, which the company estimates will save it about £8m annually in tax.

"The Irish tax rate is attractive. It makes sense to place risk where it can earn the greatest reward," said an RSA spokesman.

The company is in the middle of a review of its tax domicile.

People close to RSA said this weekend that it was now "more likely than not" that the company would decide to relocate its headquarters -- a move that would deal a further blow to a government already facing a vast reduction in tax receipts.

Internal estimates suggest that RSA, which is in talks with the British Treasury about its plans, could save about £50m every year by relocating overseas because of government proposals to change the way British companies' foreign earnings are taxed.

Last week, Brit Insurance announced it was moving to the Netherlands because of the continuing uncertainty about tax policy, and others are likely to follow.