Home > Glossary

Tax Reform Act Of 1984

Tax Reform Act (TRA) of 1984


Tax Reform Act (TRA) of 1984 — included two sections that increased the tax bill of an offshore captive insurer defined as a controlled foreign corporation. One section redefined income related to the insurance of U.S.-based risks as U.S.-source income instead of foreign-source income. Another section made income from the insurance of related risks in foreign countries taxable in the current year. The net effect of these two changes was to eliminate most tax advantages for an offshore single-parent captive.

Related Products