§ 11-05 — Change of Classification

§ 11-05 Change of Classification.

(a) A corporation subject to tax under Subchapter 2 of Chapter 6 of Title 11, may, by reason of a change in the nature of its activities, cease to be subject to such tax and become taxable under some other chapter or subchapter of Title 11. Conversely, a corporation subject to tax under some other chapter or subchapter of Title 11, may, for the same reason, cease to be taxable thereunder and become subject to tax under Subchapter 2 of Chapter 6. The date on which any such change of classification becomes effective will be determined by the facts of each case. (b) A corporation which becomes subject to tax under Subchapter 2 of Chapter 6 of Title 11, during one of its fiscal or calendar years by reason of a change in classification is treated in the same manner as a corporation which began to do business during such year (see: 19 RCNY § 11-13, infra). Similarly, a corporation which ceases to be subject to the tax imposed by Subchapter 2 of Chapter 6 of Title 11, during one of its fiscal or calendar years by reason of a change in classification is treated in the same manner as a corporation which ceases to do business in New York during such year (see: 19 RCNY § 11-14, infra).