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Bermuda’s Validus Re sues US Gov’t for ‘erroneously’ charging taxes on foreign transactions

Bermuda-based Validus Reinsurance, Ltd. is suing the United States Government for failing to refund $435,380 in taxes and interest payments that the reinsurer claims it was “erroneously assessed” for the 2006 tax year. At the core of the dispute is whether reinsurance purchased by Validus Re from other foreign reinsurers is taxable as a so-called “cascading” tax.