The District of Columbia court has issued a ruling in the case of Vlaidus Re vs. The United States government.
Validus Re filed a case against the government, alleging that the IRS improperly assessed and collected excise taxes on the company’s foreign retrocession transactions.
Validus brought about the case seeking to recover the full amount of the excise tax and related interest that it paid in connection with the challenged 2006 tax assessment.
US District Judge Amy Jackson has ruled that federal law “does not impose an excise tax on retrocession insurance transactions. It will therefore grant plaintiff’s motion for summary judgment and deny the defendant’s cross-motion for summary judgment.”
The court ruled that Validus is entitled to a refund of the excise tax and related interest that it previously paid for the four calendar quarters during 2006.
