Redacted Letter Rulings - General Corporation Tax (GCT)

Written by Finance's Legal Affairs Division, letter rulings are written statements that set forth the applicability of the statutes and rules to a specific set of facts, and are provided in redacted form to protect taxpayer-specific information.



When a related corporation does not have the same year as the parent (or the corporation designated as the “parent”) on the combined report, the related corporation’s activities for its taxable year that ends during the parent’s taxable year are used for purposes of reporting and filing as part of a combined report.  #11-4917  7/28/11
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A note, which otherwise meets the definition of investment capital, is not excluded because the interest on the note is defined as a percentage of the revenues of the issuer's parent. #08-4884 4/2/09
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Taxpayer, a manufacturing corporation located in the city, was required to use the three factor business allocation formula for apportioning its business income and not a single receipts factor. #07-4870. 3/6/2008
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Settlement fund, established to receive and invest proceeds from lawsuit pending disbursement, is not subject to GCT or UBT. #06-4854. 8/1/2006
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This hypothetical ruling addresses the attribution of income from services performed in connection with the drawing and testing of blood that occurs both within and outside the City. #06-4846. 6/28/2006
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A  taxpayer whose GCT liability is limited to the $300 minimum tax qualifies for the refundable REAP credit that is available in the taxable year of relocation and the next four taxable years. #05-4843. 2/14/2006
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A nonstock corporation formed under the Not-For-Profit Law of New York State in 1992 that did not begin operations until 2005 but whose exempt status under IRC §501(c)(4) was confirmed by the Internal Revenue Service in 2005 was held exempt from the GCT. #05-4838. 5/3/2006
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REAP benefits are available to successor surviving corporation in a merger under the facts presented. #05-4834. 7/13/2005
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An incorporated condominium homeowners association is not exempt from the General Corporation Tax (GCT). # 03-4800. 5/21/2003
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Reseller of long distance telephone service subject to the General Corporation Tax (GCT) as a vendor of utility services. #02-4798. 4/18/2003
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Settlement fund, established to receive and invest proceeds from lawsuit pending disbursement, is not subject to GCT or UBT. #01-4777. 11/26/2001
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Insurance Company that maintains a liaison office in the City is not subject to the GCT but must file an Activities Report. #00-4772. 12/5/2000
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Filing of a declaration as a financial holding company under the Gramm - Leach - Bliley Act will not in itself result in the treatment of a foreign bank as a bank holding company. #00-4758. 4/6/2000
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An election by a subsidiary of a bank to be taxed under the General Corporation Tax is not affected by the transfer of its stock to a commercial bank or the transfer of the commercial bank to a new bank holding company. In addition, that election will not be affected by the merger into the subsidiary of one or more corporations with which the commercial bank files consolidated federal returns, by the transfer of the stock of the subsidiary to the bank holding company, or by the transfer to the subsidiary of the activities of one or more subsidiaries of the commercial bank or the bank holding company. No ruling is issued on the validity of the original election. #98-4735. 6/30/1999
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An election by a subsidiary of a bank to be taxed under the General Corporation Tax is not affected by transfer of its stock to a commercial bank or the transfer of the commercial bank to a new bank holding company. In addition, that election will not be affected by the merger into the subsidiary of one or more corporations with which the commercial bank files consolidated federal returns, by the transfer of the stock of the subsidiary to the bank holding company, or by the transfer to the subsidiary of the activities of one or more subsidiaries of the commercial bank holding company. No ruling is issued on the validity of the original election. #98-4734. 6/30/1999
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Homeowners' association is not exempt from the GCT because it is operated for exempt purpose but for the benefit of private individuals. #97-4710. 12/15/1998
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A federally exempt trade organization is denied an exemption from GCT as not operated exclusively for nonprofit purposes. The organization's main activity is to maintain a product liability insurance program available only to members and members must agree not to file cross claims against each other as a condition of membership. #96-4653. 3/11/1996
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