Where a corporation subject to the tax imposed by Chapter 2 is engaged in the performance of a contract in this State which will require more than a year to complete, the Franchise Tax Board may require that the income from the contract be reported on the basis of percentage of completion unless the corporation furnishes bond or other security guaranteeing the payment of a tax measured by the income received on the completion of the contract even though the corporation is not doing business in this State in the year subsequent to the year of completion.
Cal. Rev. & Tax. Code § 24673
Year of Inclusion
Applied in 1 court decision — leading case 250 Cal. App. 2d 822 - South Coast Co. v. Franchise Tax Board (1967)
Most recently applied in 250 Cal. App. 2d 822 - South Coast Co. v. Franchise Tax Board (May 1967)
Added by Stats. 1955, Ch. 938.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.