Texas Comptroller of Public Accounts    STAR System


9608R1420C14 



STAR SUPERSEDED WITHOUT SUMMARY 

Accession No.(s): 9608R1420C14

Document superseded on: 08/15/2013 



STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
FRANCHISE TAX

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.

(c)  Allocation.

(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 
commercial domicile.

(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 
expenses.

(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  
SUPERSEDED: Y
DOCUMENT TYPE: R
DATE: 08/01/1996
TAX TYPE: FRANCHISE