Insular Sugar Refining Corp. v. Commissioner
United States Tax Court
Petitioner, a Philippine Islands corporation engaged in refining sugar, purchased in the United States the cotton bags in which its sugar was packed and sold. The manufacturer exported the bags to petitioner and added the cotton processing tax to the price charged. Petitioner later received reimbursement of the burden of the tax, the vendor having obtained refunds from the Government.
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Petitioner, a Philippine Islands corporation engaged in refining sugar, purchased in the United States the cotton bags in which its sugar was packed and sold. The manufacturer exported the bags to petitioner and added the cotton processing tax to the price charged. Petitioner later received reimbursement of the burden of the tax, the vendor having obtained refunds from the Government. Held, that the reimbursement is not exempt from the unjust enrichment tax by reason of the exportation of the bags; that petitioner is liable for unjust enrichment tax based upon the full amount of the…
1Opinion of the Court
OPINION.
Hill, Judge'.
The ultimate question in this proceeding is whether petitioner is subject to an unjust enrichment tax by reason of its receipt from a vendor of cotton bags of reimbursement representing processing tax burden which had been included in the price of the bags.
Section 501 (a) (2) of the Revenue Act of 1936 provides for a tax equal to 80 percent of the net income from reimbursement received by a vendee from his vendor of amounts representing Federal excise tax burden included in prices paid by the vendee to his vendor, but only to the extent that the vendee shifted the burden…
2Cases cited2 opinions
- Wilson Milling Co. v. CommissionerUnited States Tax Court · 1943
- Wilson Athletic Goods Mfg. Co. v. CommissionerUnited States Tax Court · 1943
3Cited by5 opinions
- Pepsi Cola Co. v. CommissionerUnited States Tax Court · 1945
- Insular Sugar Refining Corp. v. CommissionerCourt of Appeals for the Second Circuit · 1945
- Beale v. CommissionerUnited States Tax Court · 1946
- Insular Sugar Refining Corp. v. CommissionerUnited States Tax Court · 1944
- Pepsi Cola Co. v. CommissionerUnited States Tax Court · 1945