Large oil and gas company settles long-standing Texas franchise tax hearing
Clients Oil and gas company
Jones Day advised a large oil and gas company in a long-standing Texas franchise tax hearing. For purposes of calculating surplus under the former taxable capital component, the Comptroller was denying the ability to deduct certain environmental-related liabilities as debts, but was including a related contingent receivable asset in surplus. Jones Day was able to demonstrate that the disputed environmental-related liabilities were more than paid during the audit period, paving the way for a successful resolution, ultimately resulting in a refund from the Comptroller.
Texas Comptroller Hearing No. 48,071