Jump to content

Hedge Funds using Bermuda to delay taxes


Recommended Posts



Fund managers are “trying to find a way to have a vehicle that can go offshore and avoid paying taxes,” said William Berkley, founder of W.R. Berkley Corp (WRB)., a Greenwich, Connecticut-based insurer. “You have one company that does it and nobody pays attention. You now have four or five and it’s likely to get more people’s attention.”


Ugly!  Paulson takes $450mm of GP dollars and capitalizes a brand new Bermuda insurance company.  Two months later his wholly owned reinsurance company invests the capital back into the Paulson LLC funds and in the meantime writes a tiny $8mm in insurance premium for all of 2012?  This is a transparent tax dodge as Bermuda companies pay no annual taxes. 


This kind of stuff just triggers outrage and it will likely spell the beginning of the end for this type of transaction, and I would not be surprised to see US lawmakers take steps against all US taxpayers holding investments in Bermuda companies.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...