It is not clear whether tax reform will be enacted in the short term and, if it is, what the details would be. However, one of the proposals receiving significant attention is the House Republican “blueprint.”*
* A Better Way—Our Vision for a Confident America, (June 24, 2016) (a document referred to as the “blueprint” published by the House of Representatives Republican Tax Reform Task Force).
KPMG has prepared a report with observations on whether and how a “destination-based cash flow tax with border adjustment” (“DBCFT”) like that described in the blueprint might apply to insurance and reinsurance transactions.
This report is intended to describe the complexity of the issues and to raise questions. It is not intended to reach any conclusions or to express a KPMG LLP position on the tax or how it should apply to insurance or financial transactions more broadly. It has been updated as of April 7 to more clearly reflect this. If you have questions, your tax contact at KPMG would be happy to discuss questions and implications.
Read an April 2017 report [PDF 1.4 MB] prepared by KPMG LLP
For more information, contact a KPMG tax professional:
Philip M. Jacobs | +1 (212) 954-1191 | email@example.com
Clarissa C. Potter | +1 (212) 872-6913 | firstname.lastname@example.org
Tal S. Kaissar | +1 (212) 872-3880 | email@example.com
Stuart B. Katz | +1 (212) 954-6674 | firstname.lastname@example.org
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.