Corporation Tax Law General Provisions

California Revenue and Taxation Code Division 2, Part 11, Chapter 1 deals with general provisions and definitions under the Corporation Tax Law. Article 1 contains general provisions. Section 23001 names this part as the Corporation Tax Law.

Section 23002 provides that all of the provisions of this part are applicable to the taxes imposed under specified provisions.

Section 23003 notes the references to division, part, chapter, and article.

Section 23004 defines the “regulations of the Franchise Tax Board.”

Article 2 deals with definitions. Section 23030 provides that the definitions given in this chapter govern the construction of this part.

Section 23031 defines the term “Franchise Tax Board.”

Section 23032 defines the term “fiscal year.”

Section 23033 defines the term “paid or incurred.”

Section 23034 defines the term “state.”

Section 23035 defines the term “Counsel for the Franchise Tax Board.”

Section 23036 defines the term “tax.”

Section 23036.1 provides that the credit allowed by Section 23630 (relating to natural heritage) may reduce the “tax” below the tentative minimum tax.

Section 23037 defines the term “taxpayer.”

Section 23038 defines the term “corporation.”

Section 23038.5 applies IRC Section 7704 related to certain publicly traded partnerships treated as corporations with specified rules.

Section 23039 defines the term “bank.”

Section 23040 provides that income derived from or attributable to sources within this State includes income from tangible or intangible property located or having a situs in this State and income from any activities carried on in this State, regardless of whether carried on in intrastate, interstate or foreign commerce.

Section 23040.1 provides that income derived from or attributable to sources within this state does not include specified items including the distributive share of certain income. The terms “alien corporation,” “dealer in stocks or securities,” and “qualifying investment securities” are defined.

Section 23041 defines the term “taxable year.”

Section 23042 defines the term “income year.”

Section 23043.5 provides that, in determining the amount of gain or loss (or deemed gain or loss) with respect to any property, Section 7701(g) of the Internal Revenue Code, relating to nonrecourse indebtedness, applies, except as otherwise provided.

Section 23044 defines the term “international banking facility.”

Section 23045 states that Section 7702 of the Internal Revenue Code, relating to life insurance contract defined, applies; Section 7702A of the Internal Revenue Code, relating to modified endowment contract defined, applies; Section 7702B of the Internal Revenue Code, relating to treatment of qualified long-term care insurance, applies.

Section 23045.1 defines the term “substituted basis property.”

Section 23045.2 defines the term “transferred basis property.”

Section 23045.3 defines the term “exchanged basis property.”

Section 23045.4 defines the term “nonrecognition transaction.”

Section 23045.5 defines the term “domestic building and loan association.”

Section 23045.6 states that the determination of whether an individual is an employee is governed by the Labor Code. Section 7701(a)(20) of the Internal Revenue Code, relating to the definition of “employee,” applies.

Section 23046 states that Section 7701(a)(46) of the Internal Revenue Code, relating to determination of whether there is a collective bargaining agreement, applies.

Section 23046.5 states that Section 7701(n) of the Internal Revenue Code, relating to convention or association of churches, applies.

Section 23047 states that Section 7701(e) of the Internal Revenue Code, relating to treatment of certain contracts for providing services, etc., applies, except as otherwise provided.

Section 23048 states that taxable mortgage pools are defined and treated in accordance with Section 7701(i) of the Internal Revenue Code, except as otherwise provided.

Section 23049 states that Section 7701(h) of the Internal Revenue Code, relating to motor vehicle operating leases, applies, except as otherwise provided.

Section 23049.1 states that Section 64 of the Internal Revenue Code, relating to the definition of ordinary income, applies.

Section 23049.2 states that Section 65 of the Internal Revenue Code, relating to the definition of ordinary loss, applies.

Section 23051 defines the term “Bank and Corporation Tax Law of 1954.”

Section 23051.5 defines the term “Internal Revenue Code.”

Section 23058 states that the provisions of any act that affect the imposition or computation of tax, penalties, or the allowance of credits against the tax, must be applied to taxable years beginning on or after January 1 of the year in which the act takes effect, and that otherwise affect the provisions of this part are to be applied on and after the date the act takes effect.

Section 23059 states that, unless expressly otherwise provided in this part, any notice may be given by first-class mail postage prepaid.

Section 23060 explains that provisions in other codes or General Law Statutes that are related to this part include six specified provisions of law.