Texas Attorney General Opinion: C-764 Page: 4 of 5
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Honorable Joe Resweber, Page 4 (0-764)
the courts have been reluctant to disregard
the separate legal entities of the parties
merely to grant relief from sales, or similar,
taxes at the expense of the State or its sub-
division. Thus the contention that because
the wholly owned subsidiary and the parent
corporation are so closely integrated, sales
by the one to the other does not constitute
'sales' within the meaning of the sales tax,
or similar statute has been rejected by the
courts."
The Court called attention to the leading case in
matters of this nature, namely, Superior Oil Co. v. Depart-
ment of Finance, 36 N.E.2d 354, Sup.'t. Illinois (1941).
The Court continued, in the Washington case,
"The appellant asks us. to disregard its
separate existence, not in order to prevent
fraud or injustice, but in order to gain an
advantage. This we cannot do. The legisla-
ture has not seen fit to exclude transactions
between affiliated corporations, and we find
in the facts of this case nothing which would
justify the judicial engrafting of such an
exclusion upon the statute.
We find no facts present in the situation presented
that would justify excluding the sales mentioned from the
clear provisions of the statute, and, therefore, answer your
question in the affirmative.
SUMMAR Y
The Motor Vehicle Retail Sales and
Use Tax is due and payable on the transfer
of motor vehicles from a wholly-owned-3676-
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Texas. Attorney-General's Office. Texas Attorney General Opinion: C-764, text, September 22, 1966; (https://texashistory.unt.edu/ark:/67531/metapth269187/m1/4/: accessed March 29, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.