- 39 -
Petitioner also relies heavily on a Memorandum Opinion of
this Court, Equitable Life Ins. Co. v. Commissioner, T.C. Memo.
1977-299. In Equitable Life Ins. Co. v. Commissioner, supra, we
held that expenses incurred by an insurance company in
registering certain variable annuity contracts under the
Securities Act of 1933 and registering as a management investment
company pursuant to the provisions of the Investment Company Act
of 1940 were deductible. In reaching this conclusion, we
emphasized that the registration expenses were "normal, usual and
customary in the day-to-day operations of the insurance
business." We also found that the expenses were not incurred in
the acquisition of a capital asset. However, we did not analyze,
nor did we discuss, whether the expenses in question produced a
significant long-term benefit for the taxpayer.
The aforementioned cases upon which petitioner relies were
decided prior to the Supreme Court's decision in INDOPCO, Inc. v.
Commissioner, 503 U.S. 79 (1992). In fact, the Supreme Court
granted certiorari in INDOPCO, Inc. v. Commissioner, supra at 83
n.3, to resolve a perceived conflict among various Courts of
Appeals and specifically cited NCNB Corp. v. United States,
supra, and Briarcliff Candy Corp. v. Commissioner, supra. In
INDOPCO, Inc. v. Commissioner, 503 U.S. at 90, the Supreme Court
held that investment banking fees and other fees paid by the
taxpayer in connection with a friendly acquisition had to be
capitalized because they provided significant long-term benefits
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