In a recent address at Business Bermuda’s annual financial services conference in London, Bermudian Premier Paula Cox discussed the proposed US Neal Bill and her effort to entice more international companies to come to Bermuda. The Neal Bill would deny a tax deduction for reinsurance premiums paid to foreign-based affiliates by domestic insurers in the US and would likely impact many reinsurers based in Bermuda. While there has been talk of penalizing offshore companies for years, the issue recently moved back into the public eye after the Obama administration included a new version of the Neal Bill in the 2012 fiscal-year budget. In her address, the Bermudian Premier stated that there were more pressing issues on President Obama’s agenda at the moment than moving forward with the Neal Bill at this time. She also said that Bermuda, unlike other some countries currently attracting US businesses, does not cater to shell companies. Rather, US companies in Bermuda have their operations established on the island and have “real people on the ground.” According to the Premier, many people have the wrong impression that if US operations in Bermuda are shut down, then that money will “magically go back onshore.” “It won’t,” she said, “those days are in the past.”

The full text of the Neal Bill can be accessed here.