May 24, 2021

Tax Risk Insurance: Taking It Captive

According to A&M’s Albert Liguori and Ken Brewer, the use of tax risk insurance has been most prevalent in the mergers and acquisitions context. However, Al and Ken note that they have seen it becoming more common in the context of large corporate groups seeking to manage their global tax risks, regardless of whether they are related to M&A. In either context, the use of tax risk insurance lends itself to captive arrangements, for the same reasons that have caused captive arrangements to be desirable for other types of insurance risks.

Al and Ken published an article in Tax Notes discussing the possibility for the insured to use its own captive insurance company, or a shared captive, for select tax risks.

Click here to read the article.

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