Corex Corporation, Dba Quick Corporation of America v. United States

This appeal involves a refund suit brought by the Corex Corporation (“Corex”) for money paid pursuant to an excise tax assessment under Section 4161 of the Internal Revenue Code of 1954, 26 U.S.C. § 4161 . The United States brought a counterclaim for other unpaid excise taxes. Section 4161 imposes upon the sale of fishing gear by the manufacturer, producer, or importer a tax equivalent to ten percent of the price for which it is sold by the taxpayer.

Following a nonjury trial, findings of fact and conclusions of law were entered in favor of the taxpayer. The issue on appeal is whether the appellee Corex or another firm, Jon H. Importing Company (“Jon H.”), was the “importer” subject to the tax. We reverse.

“Quick” brand fishing reels and supplies were manufactured in West Germany by Deutsche Angelgerate Manufaktur (“D.A.M.”) and exported to the United States and Canada by Anton W. C. Denker (“Denker”), an export firm located in West Germany. During the years in issue D.A.M. was owned by Rupert and Lotz Kuntz with their mother, Annelisa Kuntz. In July, 1965, Rupert and Lotz, together with Philip Greyshock (a former representative for D.A.M.) incorporated Corex in…