Mut. Ben. Life Ins. Co. v. Commonwealth

• Decision Date: 24 May 1917
• Citation: 116 N.E. 469,227 Mass. 63
• Parties: MUTUAL BEN. LIFE INS. CO. v. COMMONWEALTH.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

227 Mass. 63

116 N.E. 469

MUTUAL BEN. LIFE INS. CO.

v.COMMONWEALTH.

Supreme Judicial Court of Massachusetts, Suffolk.

May 24, 1917.

Case Reserved from Supreme Judicial Court.

Petition by the Mutual Benefit Life Insurance Company for abatement and refunding of a tax. Reserved by a single justice for the determination of the full court upon the pleadings and agreed facts. Petition dismissed.

Frederick H. Nash, of Boston, for petitioner.

Henry C. Attwill, Atty. Gen., and Wm. Harold Hitchcock, Asst. Atty. Gen., for the Commonwealth.

BRALEY, J.

The petitioner alleges that it is a foreign corporation engaged in the business of life insurance in this commonwealth upon the ‘ordinary’ as distinguished from the ‘industrial’ plan as well as issuing contracts for the payment of annuities. In accordance with the St. of 1909, c. 490, pt. 3, § 26, as amended by St. 1915, c. 217, § 1, it made return to the tax commissioner upon the prescribed form of the total number of its policies in force Dec. 31, 1915, held by residents, with their aggregate value and the aggregate amount of insurance, and the excise assessed thereon the validity of which is not questioned has been duly paid. But the tax commissioner within three months after the date of the first return having required that a supplemental return should be made stating the ‘amount of the reserve’ on its annuity contracts in force in this jurisdiction on Dec. 31, 1915, the petitioner without admitting that the net value of its annuity contracts were taxable complied, and a tax of one-fourth of one per cent. having been levied, and paid under protest, this petition for abatement and refunding is brought under St. 1909, c. 490, pt. 3, §§ 70, 71. The authority to levy the excise depends upon the construction of St. of 1909, c. 490, § 26, as amended by St. 1915, c. 217, § 1, which reads as follows:

‘A domestic or foreign company or association which is engaged by its officers or by agents as defined in chapter five hundred and seventy-six of the acts of the year nineteen hundred and seven and amendments thereof and additions thereto, in the business of life insurance within this commonwealth shall annually pay an excise tax of one quarter of one per cent. upon the net value of all policies in force on the thirty-first day of December of the year preceding that in which the tax is payable, issued or assumed by such company and held by residents of the commonwealth, as determined by the tax commissioner upon the return required under the provisions of this section and such other evidence as he may obtain. Every company or association subject to the provisions of this section shall annually, on or before the tenth day of May, make a return to the tax commissioner, signed and sworn to by its president or secretary and its actuary, giving in such detail as the tax commissioner shall require the total number of policies in force on the preceding thirty-first day of December held by residents of this commonwealth, the aggregate net value thereof and the aggregate amount insured. In respect to industrial business the aggregate net value so reported may be estimated upon the basis of such general averages or otherwise as shall be authorized by the tax commissioner with the approval of the insurance commissioner, but in respect to ordinary business the aggregate net value reported shall be the combined aggregate of the mean reserve computed for each policy, or each group of policies requiring a separate computation to determine their net value, on the basis of valuation used or approved by the Massachusetts Insurance Department under the provisions of section eleven of chapter five hundred and seventy-six of the acts of the year nineteen hundred and seven and amendments thereof and additions thereto. Whenever the tax commissioner believes it to be for the best interests of the commonwealth he may require in addition to the above information the following details relating to each policy of ordinary business in force on the preceding thirty-first day of December and held by a resident of Massachusetts; the number, date, and class, the age of assured life, the amount insured and the net value.’

The respondent concedes on the authority of Curtis v. New York Life Ins. Co., ...