District court finds that insurance premium excise tax does not apply to retrocession transactions
By Bruce J Wein, Gerald Rokoff, David D Luce and Michael Greenberg
On 5 February 2014, the US District Court for the District of Columbia held that the federal excise tax (FET) on insurance and reinsurance premiums does not apply to retrocession insurance transactions.
Under a plain reading of the statute, the court reasoned, premiums with respect to such retrocession policies are not subject to the FET. Of note, the court specifically declined to rule on whether the FET could be applied with respect to foreign-to-foreign reinsurance transactions (as opposed to retrocession transactions) for US-situs risks.
Retrocession agreements are essentially reinsurance agreements between reinsurers. Clients who have paid such amounts on (or had such amounts deducted or withheld from) retrocession premiums are urged to file refund claims in order to preserve their right to such refunds…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.