Tax issues
P&I Clubs organized in the United States do not pay federal income tax on underwriting profits. A wag might say the law was superfluous.
Section 526 of the Internal Revenue Code (26 U.S.C. § 526) provides:
There shall not be included in gross income the receipts of shipowners' mutual protection and indemnity associations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder; but such corporations shall be subject as other persons to the tax on their taxable income from interest, dividends, and rents.
(Aug. 16, 1954, c. 736, 68A Stat. 178)
