By Scott Hamilton
Brattle Group, a provider of consultancy services and expert testimony, has updated its economic impact study of legislation introduced into the US Congress to close the so-called "tax loophole" said to provide foreign-owned insurers with an opportunity to obtain a significant advantage over their American competitors.
The legislation would eliminate the perceived competitive advantage for foreign-owned insurers, by deferring their tax deduction for any reinsurance premiums paid to a foreign affiliate (if the premium is not subject to US tax) until the insured event occurs.
Brattle Group, a provider of consultancy services and expert testimony, has updated its economic impact study of legislation introduced into the US Congress to close the so-called "tax loophole" said to provide foreign-owned insurers with an opportunity to obtain a significant advantage over their American competitors.
The legislation would eliminate the perceived competitive advantage for foreign-owned insurers, by deferring their tax deduction for any reinsurance premiums paid to a foreign affiliate (if the premium is not subject to US tax) until the insured event occurs.