Although certain tax benefits may be reduced for parent organisations, all US captive insurance companies will benefit from reduced tax rates from the Tax Cuts and Jobs Act, according to captive manager CIC Services.
The tax advantages of international captives may decrease as a result of The Tax Cuts and Jobs Act, which may in turn lead to decreased usage, according to George Hansen, senior industry research analyst at AM Best.
The Tax Cuts and Jobs Act of 2017 introduced by the Trump administration includes provisions affecting captives and risk retention groups (RRGs), and they should therefore contact their tax advisor to learn how it may affect them, according to captive management and consulting company JLT Insurance Management (USA).
The Minister of Finance for the Bahamas signed a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. With this signing, The Bahamas becomes the 116th jurisdiction to join the world’s leading instrument for boosting transparency and combating cross-border tax evasion.
The European Union yesterday released its results of a 10-month investigation into countries that it claims are not doing enough to crack down on offshore tax avoidance schemes.
One of the strengths of the Cayman Islands as a domicile is its team approach to captives, according to Julie Robertson, partner and chair at Honigman Miller Schwartz and Cohn.
The US Tax Court ruled against captive owners and jewellers Benyamin & Orna Avrahami on August 21 in a case long-anticipated by the captive industry.
In a decision that may place 831(b) captive insurance companies - or microcaptives - under further scrutiny, the US Tax Court has ruled in favour of the IRS in the case of Avrahami v Commissioner.
With around 35 to 40 states having now passed some form of captive legislation, more captives are redomiciling to their home state, according to Bill Mourelatos, director of Aon Insurance Managers (Vermont).
The scrutiny that some types of captives – in particular 831(b)s – face from the IRS is unlikely to go away, and advisors must get smarter about how they educate clients, according to Anne Marie Towle, captive consulting practice leader at JLT Insurance Management, speaking at the Vermont Captive Insurance Association’s (VCIA) annual conference in Burlington, Vermont.