Our tax team recently published an article about the introduction of a new Profits Division Compliance Facility by HM Revenue & Customs. This is an opportunity for multinationals, including insurers, active in the UK to initiate a discussion with HMRC on how they allocate their profits across jurisdictions for tax purposes. It is particularly relevant
What is Being Proposed In an effort to reduce perceived U.S. tax advantages for certain multinational insurance and reinsurance groups with U.S. operations, the Obama administration in its 2016 Fiscal Year Budget Revenue Proposals seeks new legislation that would deny a U.S. cedent a federal income tax deduction for premiums paid to an affiliated non-U.S.
The U.S. District Court of Appeals for the District of Columbia Circuit recently affirmed the U.S. District Court’s decision in Validus Reinsurance, Ltd. v. United States of America, that the U.S. federal excise tax (“FET”), sometimes referred to as the “cascading” FET, does not apply to retrocessions between two non-U.S. reinsurers even if the underlying
The US Internal Revenue Service (“IRS”) recently proposed new rules potentially affecting the classification of non-US insurance companies (including reinsurers and certain captives) as PFICs. In particular, these proposed rules raise three key issues for non-US insurance companies that hope to avoid PFIC status (and the application of onerous PFIC tax consequences to shareholders that
While FATCA withholding commenced July 1, 2014, issues remain for parties negotiating cross-border reinsurance agreements. Principally, the issue is how FATCA withholding risk should be allocated among the parties to the transaction and how risk allocation should be reflected in the transaction documents. Jason Kaplan and Christine Lane, of Hogan Lovells’ US tax practice, recently