The US economy is performing well and remains on a positive trajectory – but there are concerns over it overheating and the medium-term implications of the deficit, two notable economists agreed at a panel discussion held on Wednesday morning at the annual Bermuda Captive Conference, which is taking place at the Fairmont Southampton Hotel on Bermuda this week.
The State of Vermont has passed new legislation offering an onshore affiliated reinsurance alternative to insurers affected by the recent imposition of the Base Erosion Anti-Abuse Tax (BEAT) on reinsurance ceded to offshore affiliates.
The UK House of Commons has passed a bill that would require public ownership registers in the Cayman Islands and other British Overseas Territories by December 2020.
The Internal Revenue Service (IRS) has concluded its annual "Dirty Dozen" list of tax scams for 2018, placing "abusive" microcaptives on there for the fourth consecutive year.
The US Tax Cuts and Jobs Act 2017 represents the first major overhaul to federal taxes since 1986, and there are provisions that both US and international captives must be wary of. But changes are not expected to impact the numbers of captives formed.
Captive owners should not be concerned by the outcome of the Avrahami tax case despite indications that litigation against captives is increasing as a result. Captive owners confident they have formed their operations legitimately should be willing to fight any challenge.
The State of Connecticut licensed one new captive insurer and had one licensed captive insurer that never actively wrote business shut its operation, bringing the total number of captives to 14.
The European Commission has stressed the issue of aggressive tax planning in seven EU countries: Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and The Netherlands.
Mid-size companies are continuing to see the benefit of captive insurance solutions, such as US captives that make the 831(b) election, despite negative stories labeling them as tax shelters or instances of poorly structured captives being taken to court.
Despite the impact of Hurricane Maria, the long term viability of Puerto Rico as a domicile is in no doubt, according to risk management consultancy and captive manager Captive Alternatives.