Finance, Investments, and Accounting
What Is FATCA and How Do Captives Handle It?
Foreign Account Tax Compliance Act (FATCA) mandates captives, especially non-US ones, to follow US reporting rules on international payments and transactions. Captives must identify and report US-related payments, with specific requirements based on their classification as financial or nonfinancial entities. Compliance aims to ensure transparency regarding foreign assets owned by US persons. Learn More
What Captive Owners Should Know About the 953(d) Tax Election
Bruce Wright of Eversheds Sutherland explains section 953(d) of the Internal Revenue Code, which allows non-US captive insurers to be taxed as domestic companies. He discusses the election process, potential termination, and the importance of compliance, advising protective returns if an audit threatens the 953(d) election. Learn More
Why Cash Flow Is Key for Captive Insurers
Cash is king. This is especially true for captive insurers, since they typically have fewer margins for error. Captive board members should understand their captive's cash flow, so let's discuss some key areas for exploration and understanding. Read More
Custody for Captive Insurers
Martin Ellis of Comerica's Captive Insurance Group says custody for captive insurers is the safekeeping of a captive's financial assets in an account. Read More
Pro Forma Financials for Captives
Pro forma financials provide an assessment of the expected financial results for the proposed captive insurance company. Read More
Captive Insurance and Direct Placement Taxes Explained
Direct placement taxes apply to both surplus lines placements as well as placements with any nonadmitted company, such as a captive insurer. Read More