Bill Seeks To Close Controversial Tax Loophole

Law360, New York (August 3, 2009, 5:44 PM EDT) -- Rep. Richard E. Neal, D-Mass., has introduced a bill that would close a tax loophole allowing foreign insurance companies to use affiliate reinsurance to shield their U.S. earnings in tax havens.

Neal, chair of the U.S. House of Representatives subcommittee on select revenue measures, offered the bill Thursday in a move that drew praise from domestic insurers but roused criticism from industry groups representing reinsurers and other international investors.

On the House floor, the congressman vowed that the bill to amend the Internal Revenue Code would...
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