As regulators around the world increase their scrutiny of multinational companies, those companies are paying closer attention to complying with insurance and premium tax regulations, according to Marsh Regulatory and Tax Practice Leader Praveen Sharma.

Writing in a Marsh publication, he says the tax environment for multinationals has changed dramatically in recent years, with agreements between regulators and tax authorities, and companies expanding globally and seeking to cover risks more broadly and consistently.

“A number of tax authorities have been reviewing global insurance arrangements to identify unpaid premium-related taxes,” he said. “Many tax regimes have either introduced new rules or increased their premium-related tax rates.”

In Australia, the Victorian government will abolish the fire services levy and replace it with a property-based levy scheduled to be in place by July 1, 2012.