JLT Insurance Management (JLTIM) has urged all captive owners operating in Washington state to contact their tax professionals after the settlement in the Microsoft case.
Microsoft’s captive insurer, Cypress Insurance, will pay $876,820—$573,905 in unpaid premium taxes and $302,915 in interest and penalties—to the Washington state Insurance Commissioner, Mike Kreidler, as part of a settlement agreement with the state.
Cypress is domiciled in Arizona but its sole insured, Microsoft and its subsidiaries, is based in Redmond, Washington.
Following the decision to settle, Kreidler said his office will now turn their attention to other captives doing business in the state.
He added: “I want to make sure that all insurers pay their fair share as part of doing business here.”
In response to the settlement and Kreider’s comments, JLTIM urged all Washington-based captives to contact their tax professionals.
JLTIM stated: “All clients who have parent companies with headquarters or operating units in Washington to consult with their tax professionals to determine their next steps, if any.”
