Taxation

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


Capstone Examines Avrahami in New Captive Management Resource

March 14, 2018

Capstone Associated Services has released a new captive management resource that discusses the captive insurance industry case Avrahami v. Commissioner, 149 T.C. 7 (2017). According to Capstone, the collective conversation has grown-with abundant misunderstandings-since the decision was handed down by the Tax Court in August 2017. Read More


Will the Tax Cuts and Jobs Act Affect Small Captive Insurance Companies?

February 16, 2018

The end of 2017 delivered uncertain tidings concerning what effect the Tax Cuts and Jobs Act would have on the captive insurance industry. While the law affects larger captive insurers, changes are less significant for smaller captives. Management Services International provides its view on the tax law and small captive insurance companies. Read More


Captive Insurers and the Base Erosion Anti-Abuse Tax

January 26, 2018

The Base Erosion Anti-Abuse Tax imposes a 10 percent minimum tax on corporate US taxpayers. Premium payments made by US taxpayers to their non-US captive insurers and loss payments made by US captive insurers to their non-US insureds are among the amounts characterized as base erosion payments. Read More


RIMS "Legislative Review": Base Erosion and Anti-Abuse Tax (BEAT)

January 24, 2018

In response to the Tax Cuts and Jobs Act signed into law by President Donald Trump, RIMS has published a "Legislative Review" on the law's Base Erosion and Anti-Abuse Tax provisions, which will levy a 10 percent tax on transactions with foreign affiliates and impact some insurance and reinsurance programs. Read More