23 November 2022Analysis

VCIA to hold captive taxation webinar

The Vermont Captive Insurance Association (VCIA) will be holding a webinar entitled ‘Captive Taxation: Basics and Beyond’ on December 15, 2022.

According to the VCIA the webinar will update participants on the current state - and future trends - of captive taxation.

Speakers at the webinar include Daniel Kusaila, a partner at Crowe and Charles J (Chaz) Lavelle, a partner at Dentons Bingham Greenbaum. Kevin Mead, the president of the VCIA, will act as moderator for discussions.

The VCIA said that: “Our panellists will lay the groundwork by exploring the basic requirements for tax treatment of a captive insurance company. Important terms like Business Purpose, Economic Substance, Risk Shifting and Risk Distribution—along with their significance to a captive’s insurance company tax treatment—will be defined and explicated. Additionally, we will analyse the health of small captives, as the IRS continues auditing micro captives (and growing their auditing teams to do so.)

“The panel will also highlight developments in captive state tax, self-procurement tax and premium tax through the presentation of varying fact-based examples. You will learn to understand the significance of captive domicile, parent domicile and home state when determining various state taxes. Finally, the panel will look at how federal action as impacted captives, addressing likely consequences of the 2022 Inflation Reduction Act as well as potential implications of BEAT and the 30% withholding tax.”