Tax reform, Internal Revenue Service (IRS) scrutiny, and the paradise papers are all reasons why more captives are redomiciling onshore, according to Mark Elwell, vice president of risk at RMC Group.
Speaking in a session at the North Carolina Captive Insurance Association conference in Charlotte, Elwell 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 Elwell 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 Elwell 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.