Arby’s Franchise Owner Defends Tax Refund to Arkansas Justices

US Beef Corp. asked the Arkansas Supreme Court Monday to uphold its $1.27 million corporation income tax refund because selling Arby’s franchises wasn’t part of its regular business.

Arkansas Department of Finance and Administration Secretary Jim Hudson wants the justices to reverse a trial court ruling that US Beef Corp.'s capital gains on the sale weren’t taxable “business income” because the transaction disposed of the entire business.

The Oklahoma-based company pushed back in its response brief, arguing it “was not in the business of going out of business.”

Arkansas follows the Uniform Division of Income for Tax Purposes Act, ...