Union Mut. Ins. Co. v. Commissioner
United States Tax Court
Mutual Insurance Company Other Than Life -- Interest on Guaranty Fund Certificates -- Sec. 822(c)(5). -- The guaranty fund certificates represented indebtedness within the meaning of section 822(c)(5) and the interest paid thereon was deductible by a mutual insurance company other than life.
1DissentTannenwald, J.
I hold to the view that the guaranty fund certificates herein did not create that degree of debtor-creditor relationship sufficient to justify the deduction of the $35,000 paid each year as “interest paid or accrued * * * on indebtedness” within the meaning of section 822 (c) (5).
The certificates were in form a promise to pay money advanced and the semiannual payments were designated as “interest.” But it is clear that we are not bound thereby in determining the proper treatment of such payments under the Federal income tax laws. See Benjamin Franklin Life Assurance Co., 46 B.T.A. 616, 618…
2Cases cited6 opinions
- Holyoke Mut. Fire Ins. Co. v. CommissionerUnited States Tax Court · 1957
- Manhattan Mut. Life Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1938
- Commissioner of Int. Rev. v. National Grange Mut. L. Co.Court of Appeals for the First Circuit · 1935
- National Grange Mut. Liability Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Benjamin Franklin Life Assurance Co. v. CommissionerUnited States Board of Tax Appeals · 1942
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