Keystone Auto. Club Casualty Co. v. Commissioner
United States Board of Tax Appeals
1. The Keystone Automobile Club Casualty Co. and the Keystone Automobile Club Fire Co. are stock insurance companies, all the shares of capital stock of each being owned by the Keystone Automobile Club.
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1. The Keystone Automobile Club Casualty Co. and the Keystone Automobile Club Fire Co. are stock insurance companies, all the shares of capital stock of each being owned by the Keystone Automobile Club. No dividends have ever been paid on the stock and the companies refund to their policyholders, most of whom are members of the Keystone Automobile Club, such portion of the premium deposits as are not needed to pay operating costs within the discretion of the board of directors of each. Over a period of years the companies have accumulated considerable surpluses, carried on the companies'…
1Opinion of the Court
*299OPINION.
Smith:
1. The Casualty Co. and the Fire Co. claim to be exempt from income tax under section 103 of the Revenue Acts of 1928 and 1932 and section 101 of the Revenue Act of 1934, which provide in identical terms as follows:
SEC. 103. [REVENUE ACT OF 1928]. EXEMPTIONS PROM TAX ON CORPORATIONS.
The following organizations shall be exempt from taxation under this title—
[[Image here]](11) Farmers’ or other mutual hail, cyclone, casualty, or fire insurance companies or associations (including interinsurers and reciprocal underwriters) the income of which is used or held for the purpose of…
2Cases cited5 opinions
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Mygatt v. . New York Protection Insurance CompanyNew York Court of Appeals · 1860
- Kelsey v. ForsythSupreme Court of the United States · 1858
- Schimpf v. Lehigh Valley Mutual InsuranceSupreme Court of Pennsylvania · 1878
- State ex rel. Attorney General v. Manufacturer's Mutual Fire InsuranceSupreme Court of Missouri · 1886
3Cited by4 opinions
- Bank of Newberry v. CommissionerUnited States Tax Court · 1942
- Holsey Auto Sales v. CommissionerUnited States Tax Court · 1948
- Keystone Auto. Club Casualty Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Keystone Auto. Club Casualty Co. v. CommissionerUnited States Board of Tax Appeals · 1940