Texas Comptroller Upholds Sales Tax Liability in Fraudulent Business Acquisition Case

• Texas Comptroller upheld a sales tax assessment against a business transferee due to a sham transaction.
• The ruling highlights the importance of understanding state successor liability rules when acquiring businesses.
• Successor liability tax is complex and varies by state.
• The case involved a restaurant business where the new entity had connections to the original business but did not purchase it.
• The Comptroller assessed sales tax against the new entity for acquiring a business with outstanding liabilities through fraudulent means.

Source: aprio.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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