Cal. Code Regs. tit. 18 § 23281
A corporation which ceases to do business during any taxable year and does not dissolve or withdraw during that year, but remains inactive during that year and one or more succeeding taxable years, shall, upon the resumption of business, pay a tax for the year it resumes business at the tax rate applicable for the year that business is resumed measured by the income of the year in which it discontinued doing business.
EXAMPLE (1):
The A Corporation, not a financial corporation, and reporting on a calendar year basis, ceased to do business on June 30, 19X1, after several years of normal operations. During the first six months of 19X1, A had a net income of $10,000. A resumes business on January 1, 19X3, on a calendar year basis. A must pay a tax equal to one-half the tax measured by its income in 19X1, on or before March 15, 19X3, and the balance on or before September 15, 19X3.
EXAMPLE (2):
The A Corporation, not a financial corporation, and reporting on a calendar year basis, ceased doing business on June 30, 19X1, after several years of normal operations. During the first six months of 19X1, A had a net income of $10,000. A resumes business on April 15, 19X3, on a calendar year basis. A must pay a tax equal to one-half the tax measured by its income in 19X1, on April 15, 19X3, and the balance on or before October 15, 19X3.
Note: If A resumed business on August 1, 1961, the first installment would be payable on that date and the balance on or before December 31, 19X3.
This rule does not apply to commencing corporations which have paid the tax for the year in which the corporation goes inactive; in such event the corporation shall pay a tax for the year it resumes business measured by the income of the year of resumption of business. Nor does it apply to corporations which were taxable under Chapter 3 after they cease to do business in this State; see Section 23224.
Corporations which have undergone suspension or forfeiture under Section 23301, and revive in a subsequent taxable year without having done business during the period of suspension or forfeiture are subject to the commencing corporation provisions of Article 4. Payment of the minimum tax is a condition precedent to the issuance of the certificate of revivor.
Cal. Code Regs. Tit. 18, § 23281
2. Renumbering and amendment of Section 23281-23282 to Section 23281 filed 9-3-82; effective thirtieth day thereafter (Register 82, No. 37).
Note: Authority cited: Section 26422, Revenue and Taxation Code. Reference: Section 23281, Revenue and Taxation Code.
2. Renumbering and amendment of Section 23281-23282 to Section 23281 filed 9-3-82; effective thirtieth day thereafter (Register 82, No. 37).