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Applying Public Law 86-272 to the formula in Texas Tax Code �171.002, an out-of-state corporation's net taxable earned surplus will always be zero, and the tax on capital will always be greater. When the statutory formula is applied to taxable earned surplus, the franchise tax will always be based on the foreign corporation's net taxable capital.
June 13, 2005 at 12:00 AM
1 minute read
The original version of this story was published on Texas Lawyer
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