Insurance companies will have an easier time avoiding higher taxes aimed at passive investments, while for other industries, it may become more difficult.
The industry, which relies on passive income to support reserves in case of claims from catastrophic events, had been pushing for relief from the 2017 tax overhaul that would prevent insurance companies from being classified as passive foreign investment companies, known as PFICs.
Treasury listened to those concerns in final rules (T.D. 9936, RIN: 1545-BO59) released Dec. 4, helping the industry avoid new compliance costs.
But the rules added new complications for other industries, including non-bank lenders ...
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