Louisiana Appeals Court reverses Trial Court, holds foreign limited partner lacked nexus

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Mere passive ownership of an interest in a limited partnership that conducts business in Louisiana, by itself, was not sufficient to subject the foreign corporate limited partner to Louisiana franchise tax, the Louisiana Court of Appeals held in a recently released decision. In addition, the Louisiana Department of Revenue's regulation interpreting the franchise tax imposition statute was determined to be unreasonable and invalidated by the Court. [UTELCOM. Inc. and UCOM, Inc. v. Department of Revenue, La. Ct. of App., Dkt. No. 535, 407, Division "D", 9/12/11]



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