Texas Comptroller of Public Accounts    STAR System


9207R1182B06 



STAR SUPERSEDED WITHOUT SUMMARY 

Accession No.(s): 9207R1182B06

Document superseded on: 08/15/2013 



STATE OF TEXAS
COMPTROLLER OF PUBLIC ACCOUNTS
FRANCHISE TAX


Rule 3.565. Survivors of Mergers.

(a) Application. This rule applies only to corporations which are the survivors 
of mergers occurring after August 25, 1985. See Rule 3.572 concerning 1992 
Transition for mergers occurring after August 13, 1991, and before January 1, 
1992.

(b) Day upon which the taxable capital component of the tax is based - all 
reports. If a corporation is the survivor of a merger which occurred between 
the day upon which the tax is based as provided in the Tax Code, 171.153, and 
January 1 of the year in which payment is originally due as provided in the Tax 
Code, 171.152, then the taxable capital component of the tax will be based on 
the financial condition of the corporation as of the day after the date of 
merger. For example, assume a June 30 accounting year end corporation is the 
survivor of a merger which occurs October 1, 1992. The taxable capital 
component of the 1993 annual franchise tax report will be based on the 
financial condition of the corporation as of October 2, 1992, not as of June 
30, 1992. This is because the merger occurred between June 30, 1992, and 
January 1, 1993. The report and payment will be due May 15, 1993.

(c) Initial report - due dates. If the report affected by subsection (b) of 
this rule is an initial report, the report and payment of the tax will be due 
91 days after the date of merger. For example, assume a corporation is 
chartered November 1, 1992, has an October 31 accounting year end, and is the 
survivor of a merger which occurs December 1, 1993. The taxable capital 
component on its initial report will be based on the financial condition of the 
corporation as of December 2, 1993 (because the merger occurred between October 
31, 1993, and January 1, 1994). The report and payment will be due March 2, 
1994 (91 days after the date of merger), not January 29, 1994 (89 days after 
the first anniversary date).

(d) Receipts. The survivor should combine its receipts and the receipts of the 
non-survivors for the same period to determine the percent of Texas business 
for the taxable capital component of the tax.

(e) Merger credit. See the Tax Code, 171.1531, for an explanation of a credit 
to which the survivor of a merger may be entitled on the taxable capital 
component of the tax. This credit or refund must be requested by the survivor; 
it will not be given automatically.


Effective Date: July 29, 1992
Filed with Secretary of State: July 8, 1992







ACCESSION NUMBER: 9207226R   
SUPERSEDED: Y
DOCUMENT TYPE: R
DATE: 07/29/1992
TAX TYPE: FRANCHISE