California Revenue and Taxation Code

§ 24431

RTC § 24431 Effective Oct 1, 1985Div. 2 · Part 11 · Ch. 7 · Art. 3

Statute text

(a)If—

(1)Any person or persons acquire, or acquired on or after October 8, 1940, directly or indirectly, control of a corporation; or

(2)Any corporation acquires, or acquired on or after October 8, 1940, directly or indirectly, property of another corporation, not controlled, directly or indirectly, immediately before such acquisition, by such acquiring corporation or its stockholders, the basis of which property, in the hands of the acquiring corporation, is determined by reference to the basis in the hands of the transferor corporation; and the principal purpose for which such acquisition was made is evasion or avoidance of tax under this part by securing the benefit of a deduction, credit, or other allowance which such person or corporation would not otherwise enjoy, then such deduction, credit, or other allowance shall not be allowed. For purposes of this subdivision, control means the ownership of stock possessing at least 50 percent of the total combined voting power of all classes of stock entitled to vote or at least 50 percent of the total value of shares of all classes of stock of the corporation.

…

Legislative history

Amended by Stats. 1985, Ch. 1461, Sec. 111. Effective October 1, 1985.