FERMA continues to argue that captives are a risk management tool with a genuine economic rational, following a meeting with three senior executives from the OECD held in Paris in October.
FERMA wants to dispel misperceptions about captives as countries start planning to implement the OECD base erosion and profit shifting (BEPS) anti-tax avoidance measures.
“This meeting must be seen as the start of a dialogue where we expect to change misperceptions of captives by policy makers” said FERMA board member Carl Leeman and chairman of the Working Group on Captives.
During the discussion, FERMA stressed the risk management benefits of a captive for the European industry, as it had stated in its paper on captive insurance from a risk management perspective that had been published two months earlier.
The relationship will continue with further steps already planned at a more global level. FERMA will keep its members informed of any new developments. “More than ever, FERMA is committed to ensure that EU tax authorities understand better how the captives of European companies operate to preserve these risk financing capacities” said Carl.