| (a) Application. This section applies only to corporations which are the survivors of mergers occurring after August 25, 1985. See §3.572 of this title (relating to 1992 Transition) for mergers occurring after August 13, 1991, and before January 1, 1992. (b) Day upon which the taxable capital component of the tax is based--all reports. If a corporation is the survivor of a merger which occurred between the day upon which the tax is based as provided in the Tax Code, §171.153, and January 1 of the year in which payment is originally due as provided in the Tax Code, §171.152, then the taxable capital component of the tax will be based on the financial condition of the corporation as of the day after the date of merger. For example, assume a June 30 accounting year end corporation is the survivor of a merger which occurs October 1, 1992. The taxable capital component of the 1993 annual franchise tax report will be based on the financial
condition of the corporation as of October 2, 1992, not as of June 30, 1992. This is because the merger occurred between June 30, 1992, and January 1, 1993. The report and payment will be due May 15, 1993. (c) Initial report--due dates. If the report affected by subsection (b) of this section is an initial report, the report and payment of the tax will be due 91 days after the date of merger. For example, assume a corporation is chartered November 1, 1992, has an October 31 accounting year end, and is the survivor of a merger which occurs December 1, 1993. The taxable capital component on its initial report will be based on the financial condition of the corporation as of December 2, 1993 (because the merger occurred between October 31, 1993, and January 1, 1994). The report and payment will be due March 2, 1994 (91 days after the date of merger), not January 29, 1994 (89 days after the first anniversary date). (d) Receipts. The survivor should
combine its receipts and the receipts of the non-survivors for the same period to determine the percent of Texas business for the taxable capital component of the tax. (e) Merger credit. See the Tax Code, §171.1531, for an explanation of a credit to which the survivor of a merger may be entitled on the taxable capital component of the tax. This credit or refund must be requested by the survivor; it will not be given automatically.
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