Tax Shelter In Question
A tax shelter for U.S. insurance companies may be eliminated if members of Congress have their way. The shelter makes it possible for these companies to stop paying income taxes by simply moving their headquarters to Bermuda.
According to a New York Times article, six insurance companies have already started using the loophole. They either moved their offices to Bermuda or were acquired by a Bermuda insurer.
Of course, the code is not intended to allow this type of activity, so Congress is looking into the issue. Four other insurers have joined the fight as well. Those insurers contend that the shelter gives an unfair disadvantage to those companies staying in the U.S. and that the government’s revenue could be drastically reduced.
The four insurance companies are Chubb, Hartford, Kemper and Liberty Mutual.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.