Contingent Liability Insurance Definition - What does Contingent Liability Insurance mean? Contingent liability insurance is insurance protection against potential perils or obligations that may or may not come to be, depending on how a particular event turns out. Companies often purchase it to protect against the possibility that an event would result in the party owing a large sum of money.
Texas: Franchise Tax Is Not an Income Tax; Compact Election Not Allowed. In the latest decision addressing the availability of the Multistate Tax Compactâs three-factor apportionment election, a Texas appeals court ruled that the election was not allowed in computing Texas franchise (margin) tax liability.
The S corporation franchise tax is neither deductible to the corporation nor. to its shareholders (R&TC Â§17220(c), and R&TC Â§24345(a)). This tax is treated as a noncapital, nondeductible item of deduction for. purposes of computing the Accumulated Adjustments Account and. shareholder basis.