taxation

A recent paper authored by Kensuke Molnar-Tanaka, OECD Development Centre and Hiroaki Sakamoto, Kobe University, explores how catastrophe bonds are being viewed as being more advantageous compared to taxation, when it comes to tackling the increasing rise in costs related to global natural catastrophe events.

In August 2023, the Government of Bermuda announced its deliberation on the potential introduction of corporate income tax, pending a series of consultations.

Establishing insurance-linked securities (ILS) investment management operations and the impact of recent international tax developments in the industry was the focus of our latest Artemis Live video interview.

The heightened use of indemnity structured transactions by corporates in the catastrophe bond arena is expected to open up the market, but for this to happen in a meaningful way, there’s likely need for some U.S. tax reform, according to Cory Anger, Managing Director of GC Securities.

Insurance-linked securities (ILS) specialist law firm Sidley Austin LLP warns that issuers of catastrophe bonds could become subject to payment of withholding tax on U.S. Money Market Fund dividends after an exception ceases to apply.

Newly proposed regulations from the U.S. Internal Revenue Service (IRS) could change the way certain over-the-counter derivative transactions are treated for taxation purposes. The proposal would generally allow for OTC derivatives which are based on objective non-financial information to qualify as notional principal contracts (NPC’s).