Instructions For Form Ct-33-C - Captive Insurance Company Franchise Tax Return - 2005 Page 2
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2CT-33-C-I (2005) (back)
Line 10 — Section 1502-b of the Tax Law imposes a minimum tax of
50 cents through 99 cents to the next higher dollar. Round any amount
less than 50 cents to the next lower dollar.
$5,000.
Negative amounts —
Line 12b — If you did not file Form CT-5, a mandatory first installment
Show any negative amounts with a minus (-)
sign.
is required for the period following the one that is covered by this return.
Enter 25% of the tax shown on line 11.
Line instructions
Line 17 — If you do not pay the tax due on or before the original due
date (without regard to any extension of time for filing), you must pay
Line A — Make your payment in United States funds. We will accept
interest on the amount of underpayment from the original due date
a foreign check or foreign money order only if payable through a
to the date you paid (line 11 minus line 14). Exclude from the interest
United States bank or if marked Payable in U.S. funds.
computation any amount shown on line 12a or 12b, first installment of
Computation of tax and installment payments of
estimated tax for next period.
estimated tax —
Unless the captive insurance company can prove
Line 18 — Compute charges (penalties) for late filing and late payment
otherwise, we will assume that all its premiums on lines 1 through 8
of tax required to be shown on the return, after deducting any payment
are allocated to New York State and its issuer’s allocation percentage
made on or before the due date, with regard to any extension of time
is 100%. For a captive company to prove that less than 100% of its
for filing (line 11 minus line 14). Exclude from the penalty computation
premiums are allocated to New York State and its issuer’s allocation
any amount shown on line 12a or 12b, first installment of estimated tax
percentage is less than 100%, it must demonstrate that the premiums
for next period.
were taxed by another state.
A. If you do not file a return when due, or if the request for
extension is invalid, add to the tax 5% per month up to 25%
Tax on New York State gross direct premiums
(section 1085(a)(1)(A)).
Lines 1 through 4 — Four tax rates apply to gross direct premiums, as
B. If you do not file a return within 60 days of the due date, the
shown on lines 1 through 4 of this form.
addition to tax in item A above cannot be less than the smaller of
$100 or 100% of the amount required to be shown as tax
Gross direct premiums are defined in section 1510(c) of Article 33 of
(section 1085(a)(1)(B)).
the Tax Law. These premiums include total gross premiums, deposit
premiums, and assessments, less returns thereon, on all policies,
C. If you do not pay the tax shown on a return, add to the tax ½% per
certificates, renewals, policies subsequently canceled, insurance and
month up to 25% (section 1085(a)(2)).
reinsurance executed, issued, or delivered on property or risks located
D. The total of the additional charges in items A and C above may
or resident in New York State. Gross direct premiums also include
not exceed 5% for any one month, except as provided for in
premiums written, procured, or received in New York State on business
item B above (section 1085(a)(4)).
that cannot be specifically allocated or apportioned and reported as
taxable premiums, or that have not been used as a measure of a tax on
If you think you are not liable for these additional charges, attach a
business of any other state or states. For special risk premiums, only
statement to your return explaining reasonable cause for the delay in
include premiums written, procured, or received in New York State on
filing or payment, or both (section 1085).
risks located or resident in New York State. Do not include premiums
on annuity contracts, ocean marine insurance, policies issued under
Note: You may compute your penalty and interest by accessing our
section 4236 of the Insurance Law, and federal long-term care insurance
Web site and clicking on Electronic Services, or you may call and
policies issued under Chapter 90, Title 5, of the United States Code. Also
we will compute the penalty and interest for you. See Need help? on
exempt from this tax are premiums on risks located outside the United
Form CT-33-C.
States that were written, procured, or received in New York State.
Collection of debts from your refund or overpayment
The term premiums, as used in the previous paragraph, includes all
We will keep all or part of your refund or overpayment if you owe a
amounts received as consideration for insurance or reinsurance contracts
past-due, legally enforceable debt to a New York State agency, or to
(other than for annuity contracts), and includes premium deposits,
another state, or if you owe a New York City tax warrant judgment debt.
assessments, policy fees, membership fees, and separate costs
If we keep your refund or overpayment, we will notify you.
assessed upon the captive insurance company’s policyholders, and every
other compensation for such contract. In addition, premiums include any
A New York State agency includes any state department, board,
amount received by a captive insurance company as consideration for
bureau, division, commission, committee, public authority, public benefit
insurance provided to its parents and affiliated companies, in the case
corporation, council, office, or other entity performing a governmental
of a pure captive insurance company, and to the industrial insureds that
or proprietary function for the state or a social services district. We will
comprise the industrial insured group, in the case of a group captive
refund or apply as an overpayment any amount over your debt.
insurance company. The terms pure captive insurance company, group
captive insurance company, industrial insureds, and industrial insured
If you have any questions about whether you owe a past-due, legally
group are defined in section 7002 of the Insurance Law.
enforceable debt to a state agency, or to another state, or whether
you owe a New York City tax warrant judgment debt, contact the state
Deductions from gross direct premiums include:
agency, the other state, or the New York City Department of Finance.
A. Reinsurance premiums — When computing gross direct
For New York State tax liabilities only, call 1 800 835-3554 (from areas
premiums, deduct (1) reinsurance premiums that have been received
outside the U.S. and outside Canada, call (518) 485-6800) or write
by way of reinsurance from corporations or other insurers authorized to
to: NYS Tax Department, Tax Compliance Division, W A Harriman
transact business in New York State and (2) reinsurance premiums that
Campus, Albany NY 12227.
relate to transactions authorized under section 2105 of the Insurance
Law and that are subject to the premiums tax on excess-lines brokers
For New York City liabilities only, call (212) 232-3550.
under section 2118 of the Insurance Law.
B. Dividends paid or credited — Deduct dividends on direct
Line 27 — Composition of prepayments on line 14 — If you need
premiums and unused or unabsorbed portions of premium deposits
additional space, enter see attached under line 27 and attach all
paid or credited to policyholders. This deduction does not include
additional prepayment information. Include additional amounts in the
deferred dividends paid in cash to policyholders on maturing policies
total on line 27 and on line 14.
nor cash surrender values.
Privacy notification — The Commissioner of Taxation and Finance may collect and maintain
personal information pursuant to the New York State Tax Law, including but not limited to,
Tax on New York State reinsurance premiums
sections 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and
may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i).
Lines 5 through 8 — Section 7010 of the Insurance Law explains the
reinsurance business that may be performed by a captive insurance
This information will be used to determine and administer tax liabilities and, when authorized
by law, for certain tax offset and exchange of tax information programs as well as for any
company. A captive insurance company may assume reinsurance
other lawful purpose.
on risks ceded by any other insurer when the risks ceded are solely
Information concerning quarterly wages paid to employees is provided to certain state
those of the industrial insured or members of the industrial insured
agencies for purposes of fraud prevention, support enforcement, evaluation of the
group owning the captive insurance company. Also, when it has the
effectiveness of certain employment and training programs and other purposes authorized by
permission of the Superintendent of Insurance, a captive insurance
law.
company may assume risks of any insurer, provided the reinsurance
Failure to provide the required information may subject you to civil or criminal penalties, or
premiums assumed do not exceed 50% of the gross premiums written
both, under the Tax Law.
by the captive insurance company in the calendar year.
This information is maintained by the Director of Records Management and Data Entry, NYS
Tax Department, W A Harriman Campus, Albany NY 12227; telephone 1 800 225-5829. From
Four rates apply to reinsurance premiums. Any reinsurance premiums
areas outside the United States and outside Canada, call (518) 485-6800.
deducted from gross direct premiums on lines 1 through 4 should be
included and subjected to tax on lines 5 through 8.
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