The COMPANY will indemnify the INSURED against FEES
AND EXPENSES
(a) in respect of a TAX INVESTIGATION into the
INSUREDS tax liability being carried out by an
officer of the Inland Revenue of the United
Kingdom during the Period of Insurance
(b) in pursuit of PROCEEDINGS against a Third
Party (other than EMPLOYEE or former
EMPLOYEE) following an act or omission
occurring during the Period of Insurance
relating to property owned by the INSURED
which results in or is likely to result in
(i)
physical damage to that property and/or
(ii)
pecuniary loss to the INSURED
LIMIT OF LIABILITY
The maximum liability of the COMPANY payable under
this Section is £25,000 per TAX INVESTIGATION or
PROCEEDINGS and limited to £50,000 in the aggregate in
the Period of Insurance
SPECIAL CONDITION
This applies in addition to the General Conditions
COMPANYS CONSENT
The COMPANYS consent to incur FEES AND EXPENSES
must be obtained in writing This consent will be given if
the INSURED can satisfy the COMPANY that it is
reasonable to incur FEES AND EXPENSES and there are
reasonable prospects of a successful defence of the
INSURED The COMPANYS consent previously given may
be withdrawn at any time when it ceases to be reasonable
in the opinion of the COMPANY for FEES AND
EXPENSES to be incurred In all cases the INSURED will be
advised of the granting or refusal of the COMPANYS
consent
EXCLUSIONS
These apply in addition to the other Exclusions in this
Section and the General Exclusions
The COMPANY will not be liable for
1
any FEES AND EXPENSES incurred before the
COMPANYS consent has been given
2
any cause event or circumstance occurring prior to the
first Period of Insurance under this Policy
3
any liability for the costs of a TAX INVESTIGATION
(a)
if at the end of the TAX INVESTIGATION the
INSURED is assessed to tax on profits in any
year which are more than 15% greater than the
profits the INSURED had declared before the
investigation started or found to have
overstated losses in any year by over 15% more
than the losses the INSURED had declared
before the investigation began
(b)
which arises out of the INSUREDS accounts or
returns having been submitted to the Inland
Revenue in a penalty position under the
auspices of the Taxes Management Act 1970 or
which arises out of the INSURED not
maintaining accurate truthful and up-to-date
records
4
the cost of PROCEEDINGS in respect of any claim
(a)
arising from a contract made between the
INSURED and a third party
(b)
arising from a lease or licence to occupy land or
property and disputes relating to the occupation
of land or property owned by the INSURED by
a party or parties whose licence to occupy such
property has been determined or revoked or
which was never granted by or on behalf of the
INSURED
(c)
involving goods in transit or good hired or lent
to third parties or goods at premises other than
those occupied by the INSURED
(d)
involving a motor vehicle belonging to or in the
possession of the INSURED
(e)
arising from an appeal against refusal of
planning permission
(f)
first notified to the COMPANY more than 180
days after the termination of this insurance or
after the INSURED has ceased trading