Taxation

Microsoft's Captive Tax Issues Not Applicable in Most Other States

August 23, 2018

At the North Carolina captive insurance conference, Bruce Wright, a partner at Eversheds Sutherland (US) LLP, shared some insights surrounding Microsoft Corporation's Arizona captive insurance company (Cypress Insurance Company) payment of more than $875,000 for unpaid premium taxes and interest and penalties to the state of Washington. Read More


A.M. Best Revisits Tax Law Impacts on Captive Insurer Ratings

June 29, 2018

A.M. Best said that the impact of tax reform is generally a positive for US-domiciled captives and a mixed bag for offshore captive insurance companies, though in some cases, it is a positive for offshore captives that have made the section 953(d) election under the Internal Revenue Code. Read More


Direct Placement Tax Decision from the Tax Court of New Jersey

June 22, 2018

The Tax Court of New Jersey recently rendered an interesting decision regarding direct placement taxes. Eversheds Sutherland discusses Johnson & Johnson v. Director, Division of Taxation and Commissioner, Department of Banking and Insurance. Read More


Tax Court Issues Second Small Insurance Company Case

June 21, 2018

On June 18, 2018, the US Tax Court issued its opinion in Reserve Mechanical Corp. v. Commissioner, holding for the IRS. Eversheds Sutherland says that the facts of the case appear substantially similar to LTR 201609008, issued by the IRS in 2016. Read More


US Tax Court Finds Deficiencies in "Reserve Mechanical" Captive Arrangement

June 19, 2018

In a new opinion, the US tax court found that Reserve Mechanical Corp., a captive insurer incorporated in Anguilla and owned by Peak Casualty Holdings, LLC, failed to qualify as an insurance company for federal income tax purposes under Internal Revenue Code section 501(c)(15). Read More