Citgo Loses $2 Million Futures Trading Tax Appeal in Texas Court

Citgo has been denied a $2 million tax refund after a Texas appeals court ruled that net proceeds, not gross proceeds, from selling commodity futures should be included in franchise tax calculations.

The Texas Court of Appeals, Third District on Thursday affirmed a lower court’s decision that Citgo Trading should have included net proceeds from selling securities, not gross proceeds, in the denominator used to calculate the oil and gas company’s apportioned margin on its franchise tax returns. The company had applied for a refund after an audit by the Texas Comptroller of Public Accounts determined that it had ...