§ 11-05 Change of Classification.
RCNY § 11-05
(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).
