Kidde Industries, Inc. v. United States

OPINION

ANDEWELT, Judge.

I

In this tax refund action, plaintiff, Kidde Industries, Inc. (Kidde), seeks a refund for income taxes it allegedly overpaid for tax years 1977 and 1978. This action is before the court after trial on two of the four counts presented in plaintiff’s amended complaint. The first count, Count II, raises issues concerning the proper tax treatment of premiums paid by a parent company for insurance ultimately provided by a wholly owned subsidiary, ie., where the parent company’s insurance is provided by a “captive insurer.” The second count, Count IV, alleges that plaintiff…