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1993 through 2052 indicated petitioner would incur net pretax
out-of-pocket losses as follows:
Pretax Pretax Pretax
Loss Loss Loss
Year Effect Year Effect Year Effect
1993 $4,605,000 2013 $16,390,000 2033 $15,238,000
1994 8,403,000 2014 17,839,000 2034 14,769,000
1995 11,282,000 2015 18,071,000 2035 14,320,000
1996 10,399,000 2016 18,285,000 2036 13,828,000
1997 9,997,000 2017 18,492,000 2037 13,281,000
1998 9,559,000 2018 18,546,000 2038 12,674,000
1999 9,381,000 2019 18,446,000 2039 12,013,000
2000 9,756,000 2020 18,342,000 2040 11,312,000
2001 9,959,000 2021 18,228,000 2041 10,583,000
2002 10,310,000 2022 18,103,000 2042 7,675,000
2003 10,725,000 2023 17,968,000 2043 5,867,000
2004 11,358,000 2024 17,817,000 2044 8,374,000
2005 12,215,000 2025 17,645,000 2045 7,782,000
2006 13,151,000 2026 17,446,000 2046 7,214,000
2007 14,178,000 2027 17,215,000 2047 6,650,000
2008 10,134,000 2028 16,946,000 2048 6,110,000
2009 11,269,000 2029 16,643,000 2049 5,583,000
2010 12,420,000 2030 16,193,000 2050 5,070,000
2011 13,653,000 2031 15,086,000 2051 4,586,000
2012 14,973,000 2032 16,545,000 2052 4,742,000
Total pretax loss 755,644,000
The projection of profit and loss also included an analysis
of the effect of the COLI plan on petitioner's income tax
liability in each of the years 1993 through 2052. Assuming a 38-
percent corporate tax bracket,11 the projected $11,902,000 loan
interest accrued and deducted by petitioner in the first policy
11The corporate tax rate on all projections was an estimated
combined Federal and State marginal tax rates.
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