Insular Sugar Refining Corp. v. Commissioner

EVANS, Circuit Judge.

The Tax Court held petitioner liable for $6,152.371 unjust enrichment taxes for 1935 and 1936. 3 T.C. 922. Dissatisfied with this ruling, it is here on appeal.

Petitioner is a Philippine company engaged in refining sugar. The sugar is shipped in cotton bags purchased from a United States company. These cotton bags were subjected to a processing tax beginning August 1, 1933. A claim based on a demand for a refund of these taxes constitutes the basis of the instant unjust enrichment tax. Sec. 501(a) (2) of the Revenue Act of 1936.2

Petitioner advances three reasons for…