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.