How Irving’s Bermuda insurance company piled up millions in offshore tax-free profits

By Jacques Poitras and Frédéric Zalac
CBC News
November 3, 2022
Category: Business & Politics
Region: Canada, Canada East

New Brunswick’s Irving family created an offshore insurance company that allowed them to move millions of dollars in profits out of Canada and into the tax haven of Bermuda, according to documents reviewed by CBC. The Irving-owned Bermuda insurance company, F.M.A. Ltd., sold insurance premiums to Irving companies for their marine vessels. F.M.A. then reinsured major risks to those vessels by paying lower premiums to a non-Irving reinsurance company based in Bermuda. That allowed F.M.A. to accumulate almost $13.4 million in untaxed income between 1973 and 2001. …F.M.A. was what is known as a “captive insurance” company, an insurer with the same owner as the insured company or assets, allowing that owner to benefit from the insurance profits. …Geoffrey Loomer, a law professor, says  “It’s an easy way for a Canadian-based multinational to save some Canadian tax.” …The practice is legal.

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