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Financial services and product taxation

Eversheds Sutherland financial services sector tax lawyers provide innovative solutions to a broad array of complex tax issues faced by insurers, reinsurers, and other multinational financial institutions. Our group’s deep knowledge and experience in this sector helps financial services companies to achieve optimal tax outcomes for themselves and their products.

Taxation of insurance companies, insurance products, and reinsurance transactions

For more than five decades, our tax lawyers have addressed the most challenging tax issues facing the insurance industry, including the ways tax affects day-to-day company operations, proposed acquisitions and reorganizations, reinsurance and other surplus enhancement programs, captive insurance company arrangements, insurance product design, and the treatment of policyholders and shareholders. Our long-standing commitment to serving the insurance industry has afforded us opportunities to develop relationships with key Internal Revenue Service and Treasury Department officials which allow our tax lawyers to bring an unparalleled level of experience and vision to assist our insurance company clients.

Eversheds Sutherland financial services sector tax lawyers have a broad range of experience with tax matters involving insurance products and other insurance arrangements, including:

• Designing tax-compliant life insurance and annuity products for the retail, private placement, and corporate markets and remediating life insurance products that fail to be tax compliant;

• Working closely with major investment banks in developing investment strategies that support variable insurance products;

• Assisting corporate clients with assessments of their insurance programs, including COLI/BOLI arrangements;

• Advising on the design of cutting-edge property-casualty insurance products, captive insurance company arrangements, and other alternative risk transfer vehicles; and

• Assisting on the transfer and restructuring of insurance company portfolios without UK stamp tax liability.

Significantly, in 2016, Captive Review named Eversheds Sutherland tax advisory firm of the year for the fourth consecutive year in its U.S. Captive Service Awards.

Our tax lawyers frequently navigate and resolve multifaceted international tax issues for our insurance company clients, including the application of the Foreign Account Tax Compliance Act (FATCA), the OECD Common Reporting Standard (CRS), income tax treaties, the insurance provisions of Subpart F, the passive foreign investment company provisions, the branch profits tax rules, and the federal excise tax on insurance and reinsurance premiums. Of note, we represent Lloyd’s of London in connection with all U.S. federal income and excise tax issues, and we frequently handle tax matters impacting Lloyd’s members’ and managing agents.

In addition to providing planning and transactional advice, Eversheds sutherland financial services sector tax lawyers regularly handle insurance company tax controversies. When complications with tax issues develop, insurance companies need knowledgeable lawyers on their side, and we know how to handle federal and state controversies at every stage from audit to litigation.

Taxation of capital markets transactions and financial products

Access to capital may be the single most important factor in the growth of any business, from the largest Fortune 500 companies to the smallest private businesses. Knowing when to access the markets, how to seize and structure growth opportunities, and how best to work within the evolving regulatory environment can all be significant challenges.

Eversheds Sutherland financial services sector tax lawyers have gained that knowledge by working with a diverse client base that includes leading insurance companies, banks, asset managers, broker-dealers, regulated investment companies (RICs), authorized investment funds (including authorized contractual schemes ) (ACSs)), business development companies (BDCs), hedge funds, private equity funds, venture capital funds, real estate investment funds, including property authorized investment funds (PAIFs), real estate investment trusts (REITs), UK REITs and real estate mortgage investment conduits (REMICs), as well as other financial institutions. Through our work with these clients, our tax lawyers frequently offer advice on tax issues related to:

• Domestic and foreign public and private debt offerings;

• Synthetic and hybrid instruments;

• Foreign currency transactions;

• Swaps and derivatives;

• Hedging transactions; and

• Other complex financial products and capital markets transactions, including the tax implications of modifications to, and defeasances of, commercial mortgages held by REMICs.

Our commitment to a rapidly changing sector

Economic turbulence and regulatory upheaval have fueled rapid change across the financial services sector. Technology has fundamentally reformed the way markets operate and companies do business. A convergence of financial institutions and the products and services they offer has introduced new players, while eliminating long-standing ones. Financial services companies need lawyers who monitor and understand this dynamic business environment, as well as working with industry bodies and government departments on improvements to the tax system.

Financial services tax team

Through our combined and continuing efforts, Eversheds Sutherland financial services tax team understands the challenges our clients face and constantly strive to provide innovative solutions to help them better compete in this evolving business environment. We would welcome the opportunity to do the same for you and your business. Please do contact the financial services tax team for more information.

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© Eversheds Sutherland 2023. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.