A new tax agreement is generating interest among Canadian companies in forming captives in Bermuda, according to an island official.
Shelby Weldon, director of insurance, licensing and authorizations with the Bermuda Monetary Authority, tells NU, "Canadians are now recognizing the benefits [of captives]—benefits that many in the U.S. have been enjoying for quite some time."
Jill Husbands, a managing director and office head of Marsh Management Services (Bermuda) Limited, concurs that the tax deal could spark a lot of business.
"We are seeing great interest from Canadian companies to set up captives in Bermuda," Husbands says. That interest is mostly coming from global Canadian companies with operations both in and outside of Canada.
Up until now, Husbands adds, Barbados "has had the advantage, but the signing will put Bermuda on an equal [tax] footing."
(The tax treaty has been signed by the Bermudian and Canadian governments, but still has to be ratified by the Canadian Parliament.)
"Until the ratification occurs, it's just interest, but the interest is definitely there," says Husbands.
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