U.S. Sides with Tax-Avoiding Companies
July 23, 2015 (Houston, TX) - Bloomberg reports that the Obama administration handed a victory to U.S. companies that minimize taxes by establishing a foreign domicile, suggesting that virtually all of them are still eligible for U.S. government contracts.
The Department of Homeland Security last year endorsed a legal memorandum that argued in part that a 2002 law banning such companies from federal contracts was invalid. Although President Barack Obama later began publicly criticizing the tax maneuvers known as corporate inversions, there is no sign that he has reversed the department’s decision.
Capstone administers the design, implementation, and management of captive insurance arrangements, providing exceptional risk coverage for middle market organizations. Middle market businesses may obtain tailored risk coverages and fill in gaps in their existing commercial policies with a captive insurance arrangement. Insurance premiums paid to the captive insurer are made on a tax-deductible basis.
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Editor’s Notes: As of CURRENT_YEAR, Capstone has been operating for CAP_YEARS_NUMBER years and has formed over CAPTIVE_FORMATIONS captives. As of CURRENT_YEAR, The Feldman Law Firm has been operating for LAW_YEARS_NUMBER years and has successfully resolved over TAX_CONTROVERSIES tax matters. As of CURRENT_YEAR the cap on 831(b) captive insurance premiums is CURRENT_PREMIUM_CAP million.