The 9th U.S. Circuit Court of Appeals today said Texaco was not entitled to receive a tax refund of more than $101 million that the company felt should be returned after it settled a dispute with the Department of Energy.
As part of a consent decree, Texaco paid the government $1.25 billion plus interest in the late 1980s and early 1990s.
It then attempted to deduct the settlement amount on it taxes as an ordinary and necessary business expense. However, the deductions were denied.
The Department of Energy had taken administrative action against Texaco after finding its oil sales between 1973 and 1981 exceeded prices set by federal petroleum regulations.
Texaco is now part of Chevron Corporation.
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