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Article: Some British Virgin Islands captives draw IRS heat.(Spotlight)
- Article from:
- Business Insurance
- Article date:
- March 10, 2003
- Author:
CopyrightCOPYRIGHT 2003 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DOUGLAS McLEOD
TORTOLA, British Virgin Islands-The British Virgin Islands' captive industry continued to expand last year despite a potential threat to one of its primary sources of new business.
The U.S. Internal Revenue Service announced last fall that it would scrutinize ``producer-owned reinsurance companies'' formed by car dealers, lenders and retailers to write warranty and other products under Section 501(c)(15) of the Internal Revenue Code.
Captives formed under Section 501(c)(15) have accounted for a large percentage of the new business generated in recent years in the British Virgin Islands, long an attractive domicile for ...