Carpenter

Pacific Coast Insurance Association was an insurance company doing business in California throughout the year 1931, and until January 19, 1932. On that date it was adjudged insolvent and ordered liquidated by the Insurance Commissioner iiursuant to statute. (Peering’s Gen. Law, Act 3739.) The said company did not file a tax report with the Insurance Commissioner in 1932, and the Insurance Commissioner did not file a report in said year with the state board of equalization, as required by statute. (Pol. Code, sec. 3666a.) Consequently the board did not assess a tax in said year on the gross premiums of business done in 1931. The tax for such omitted year was eventually assessed in 1934 at the regular time for assessment of such taxes. The amount was $7,653. The State Controller filed his claim for tax and penalties with the Insurance Commissioner as liquidator of the company, which claim was rejected. The lower court held the assessment a nullity, and the Controller brought this appeal.

The first and main issue is whether a tax and penalties on gross premiums may be assessed in March of a year following that in which the premiums were earned, notwithstanding the fact that at the…