Texas Comptroller of Public Accounts STAR System
STAR SUPERSEDED WITHOUT SUMMARY
Accession No.(s): 9608R1420C14
Document superseded on: 08/15/2013
STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
Section 3.576. Earned Surplus: Allocation. (Tax Code, sec. 171.1061).
(a) Effective date. This section applies to reports originally due on or
after January 1, 1994.
(b) Presumption. All income is presumed to be unitary income. Factors in
determining whether income is unitary are: centralization of management,
functional integration, and economies of scale. Income may only be allocated
when the income is in the nature of an investment, rather than operational.
(1) If it is determined that an item of income is non-unitary, with the
exception of dividends and interest, it will be allocated to Texas net of
related expenses, rather than apportioned, if Texas is the corporation's
(2) If it is determined that an item of income is non-unitary and it is
allocated, rather than apportioned, but not to Texas because the corporation's
commercial domicile is not in Texas, the allocation must be net of related
(3) Non-unitary income and its related expenses must be excluded in
determining apportioned earned surplus.
Effective Date: August 1, 1996
Filed with Secretary of State: July 11, 1996
Comptroller of Public Accounts
ACCESSION NUMBER: 9608R1420C14
DOCUMENT TYPE: R
TAX TYPE: FRANCHISE