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Texas Court of Appeals rules payments into asbestos settlement fund not includible in COGS deduction

The Texas Court of Appeals, Fourth District, recently affirmed a District Court decision which determined that a taxpayer was not entitled to include a payment into an asbestos settlement trust fund in its Texas Franchise Tax "cost of goods sold" deduction. Specifically, the costs did not qualify as “costs of quality control” pursuant to Tex. Tax Code Ann. Sec. 171.1012(d)(9).