Tax reform, Internal Revenue Service (IRS) scrutiny, and the paradise papers are all reasons why more captives are redomiciling onshore, according to Mark Ewell, vice president of risk at RMC Group.
Speaking in a session at the North Carolina Captive Insurance Association conference in Charlotte, Ewell said that “there is still a stigma to being offshore”.
He said: “Tax reform can lead to a lot of companies redomiciling. IRS scrutiny has led to more companies coming onshore.”
Self-procurement taxes and previous bad experiences with regulators are other reasons that Ewell highlighted as instances that captives may want to redomicile
He added that self-procurement taxes are “something that is on a lot of people’s minds at the moment”.
But Ewell pointed out that, ultimately, the captive and client’s needs and risks affect the decision, and he said there is “nothing wrong” with being an offshore domicile.