Insurance tax professionals discuss the current tax and regulatory landscape of the captive industry, including the OECD’s BEPS plan and IRS scrutiny of micro captives
Captive insurance is regarded as a beneficial approach to alternative risk financing owing to its provision of bespoke coverage, flexibility for emerging risks and reduced premiums — more controversially, the structures also offer opportunities for tax deduction and wealth accumulation.
General tax avoidance vehicles have been an increasing area of focus for organisations such as the Internal Revenue Service (IRS) and the Organisation for Economic Co-operation and Development (OECD).
The Inclusive Framework of the OECD aims to prohibit the specific tax avoidance strategy of base erosion and profit shifting (BEPS). This refers to a practice commonly implemented by large multinational enterprises (MNEs)…