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.
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.