Voya 2014 Annual Report Download - page 121

expense determined using the federal statutory income tax rate of 35%. Also, interpretation and enforcement of
existing tax law could change and could be applied to us as part of an IRS examination and increase our tax
costs. In the course of such examinations, we have entered into agreements with the IRS to resolve issues related
to (1) the application of the Section 382 limitation, (2) whether certain derivative transactions qualify for hedge
treatment, (3) the proper treatment of valid tax hedge gains and losses and (4) “other than temporary impairment”
losses. These agreements may be superseded by future enacted laws, regulations or public guidance that increase
our taxes and our effective tax rates. Further, changes in tax rates could affect the amount of our deferred tax
assets and deferred tax liabilities. One such change relates to the current debate over corporate tax reform and
corporate tax rates. A reduction in the top federal tax rate would result in lower statutory deferred tax assets.
Such a reduction in the statutory deferred tax asset may impact the ability of the affected insurance subsidiaries
to make distributions to us and consequently could negatively impact our ability to pay dividends to our
stockholders and to service our debt.
Changes in tax laws could make some of our insurance, annuity and investment products less attractive to
customers. Current U.S. federal income tax law permits tax-deferred accumulation of income earned under life
insurance and annuity products, and permits exclusion from taxation of death benefits paid under life insurance
contracts. Changes in tax laws that restrict these tax benefits could make some of our products less attractive to
customers. Reductions in individual income tax rates or estate tax rates could also make some of our products
less advantageous to customers. Changes in federal tax laws that reduce the amount an individual can contribute
on a pre-tax basis to an employer-provided, tax-deferred product (either directly by reducing current limits or
indirectly by changing the tax treatment of such contributions from exclusions to deductions) or changes that
would limit an individual’s aggregate amount of tax-deferred savings could make our retirement products less
attractive to consumers.
With the leadership changes as a consequence of the mid-term elections, Congress has signaled renewed
interest in pursuing tax reform premised on the notion of reducing corporate rates by broadening the taxable
income base and reducing tax preferences, including possibly the reduction or elimination of tax preferences
associated with our industry. We also believe that states that stand to lose tax revenue of their own will exert
pressure on the federal government not to enact additional measures as part of comprehensive tax reform that
would negatively impact them. Such a situation may result in more pressure on raising revenue from tax
preferences associated with our Company and products.
Risks Related to Our Separation from, and Continuing Relationship with, ING Group
ING Group’s continuing significant interest in us may result in conflicts of interest.
ING Group owns approximately 19% of our outstanding common stock. ING Group is currently required
pursuant to the 2012 Amended Restructuring Plan to divest all of its global insurance and investment
management business. See “Item 1. Business—ING Group Restructuring Plan with European Commission”. It is
thus expected that ING Group will sell its remaining interest in Voya Financial, Inc. through one or more
additional public offerings of our stock or, possibly, through one or more privately negotiated sales of our stock.
Conflicts of interest may arise between us and ING Group in a number of areas relating to our past and
ongoing relationships. While ING Group is no longer a majority stockholder and no longer has rights under the
Shareholder Agreement to appoint directors, it is still our largest shareholder and can exercise significant voting
power in shareholder elections.
Our continuing relationship with ING Group, our largest shareholder, and with affiliates of ING Group, may
affect our ability to operate and finance our business as we deem appropriate and changes with respect to ING
Group could negatively impact us.
ING Group owns 19% of our common stock. Circumstances affecting ING Group may continue to have an
impact on us and we cannot be certain how further changes in circumstances affecting ING Group may impact us.
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