IRS Can't Double-Tax Retrocessions, Judge Says

Law360, New York (February 5, 2014, 5:57 PM EST) -- The D.C. District Court on Wednesday found that federal law bars the Internal Revenue Service from collecting excise taxes on certain retrocession insurance policies, ordering the IRS to refund $425,000 in double-imposed taxes to a foreign reinsurance company.

District Judge Amy Berman Jackson said that while the Revenue Code allows the IRS to tax insurance transactions issued by foreign insurers and reinsurers, reinsurance premiums paid to insure other reinsurance policies — called retrocessions — are not subject to taxation. 

“[The government’s] position cannot be squared with...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

VALIDUS REINSURANCE, LTD. v. UNITED STATES OF AMERICA


Case Number

1:13-cv-00109

Court

District Of Columbia

Nature of Suit

Taxes

Judge

Amy Berman Jackson

Date Filed

January 24, 2013

Law Firms

Companies

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.