Legal Opinion
Kennedy v. Fina Oil & Chemical Co.
Louisiana Court of Appeal
Decided June 25, 1999No. 98 CA 1427Published
1Opinion of the Court
_|¿FITZSIMMONS, J.
The issue is whether cash advances from life insurance policies owned by defendant, Fina Oil and Chemical Company (Fina), are borrowed or additional capital. Plaintiff, the Secretary of the Department of *911Revenue and Taxation (state), asserts that cash advances are a loan. If these funds were borrowed or additional capital, the cash advances would be subject to Louisiana franchise tax. La. R.S. 47:601, et seq.
One of Fina’s evidence exhibits was a Financial Accounting Standards Board bulletin, dated November 14, 1985. The bulletin stated that an investment in life insurance…
2Cases cited4 opinions
- Board of Assessors of the Parish v. New York Life InsuranceSupreme Court of the United States · 1910
- United States v. Herbert W. Virgin, Jr.Court of Appeals for the Fifth Circuit · 1956
- Schwartz EstateSupreme Court of Pennsylvania · 1952
- Smith v. Equitable Life Assurance Society of the United States (In re Watts)District Court, E.D. Virginia · 1981