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Texas Supreme Court nixes netting investment losses against other receipts

The Texas Supreme Court ruled on April 15 that the Texas comptroller cannot offset net losses from sales of capital assets and investments against other gross receipts in determining the revised Texas franchise tax sales factor denominator. In reversing lower court rulings that had endorsed the comptroller’s regulatory interpretation of a statute, the Supreme Court ruled that the comptroller’s regulation conflicted with the plain meaning of the statute.

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