Lambeth

This action was brought for a refund of taxes assessed under 26 U.S.C.A. § 1700 which provides for a cabaret tax on amounts collected for admissions, refreshments, service and merchandise by establishments furnishing a public performance for profit. 1 The tax was assessed against appellee as an individual upon receipts obtained as manager of the so-called “Cozy Club” for the period from May 1, 1943 to July 31, 1944. The tax amounted to $6,-813.97.

The “Cozy Club” was incorporated in Oregon in 1929 as a non-profit organization. For some time prior to 1941, it had been managed by one Church who received for his “services” a straight salary, plus further compensation as rental for certain equipment used by the “club.” The organization at this time operated under a “Service License” 2 which permitted the licensee to mix and prepare drinks from liquors furnished by patrons and requires the licensee to serve the public generally. 3 Appellee bought Church’s interest and equipment and continued to lease the same to the club which was renamed the “La Fiesta” and its location changed. Appellee was entitled “Secretary-Treasurer” and acted as manager. She was personally responsible for all…