What to do with a collective life insurance agreement if an employee leaves?

The legislation of Ukraine provides that if during the term of the life insurance contract (10-20 years) one of the employees leaves, the insurer and the policyholder must retroactively transfer all taxes unpaid in previous periods.

Now the company can attribute this to the cost price. At the same time, 25% income tax and 15% income tax are not paid. In addition, deductions are made from wages to all funds, and this is another 37%.

If the company terminates the contract in relation to any person, then all these taxes must be paid retroactively with interest. In accordance with the same norms, the insurance company does not pay 3% tax on gross income.

If you pay all these taxes, then practically nothing remains of the accumulated amount. Moreover, if an employee leaves, the sanctions under the contract apply to everyone, which is not clear.

This issue is not regulated in the tax legislation, although any lawyer will say that when one person is fired, the contract is terminated only in part of it. The tax authorities say that the contract cannot be terminated only in part of an individual, but is terminated completely.

At the same time, according to the law “On Insurance”, insurers must keep personalized records for each of the employees.