Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

A Matter of Semantics: Validus Reinsurance Invalidates Foreign-to-Foreign Withholding

29 June 2015
Mayer Brown Legal Update
On May 26, 2015, the DC Court of Appeals issued its opinion in Validus Reinsurance. In this case, the court held that the federal excise tax on reinsurance could not be applied to a foreign-to-foreign retrocession transaction because the US Internal Revenue Service did not establish that Congress intended to override the “presumption against extraterritoriality” for US laws. In the attached Mayer Brown alert, Mark Leeds of the New York office examines the decision and whether the reasoning of the court could apply to withholding on FDAP income and withholding required under the Foreign Account Tax Compliance Act (FATCA).

Authors

  • Mark H. Leeds
    T +1 212 506 2499
  • George W. Craven
    T +1 312 701 7231
  • James R. Barry
    T +1 312 701 7169
  • Lucas Giardelli
    T +1 212 506 2238

The Build a Report feature requires the use of cookies to function properly.  Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently.  If you do not accept cookies, this function will not work.  For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.