ACCA Advanced Taxation (ATX) Practice Exam

For a company with a long period of account, how many payment deadlines exist?

1. One payment date and one filing date

2. Two payment dates and one filing date

3. One payment date and two filing dates

4. Two payment dates and two filing dates

The correct answer is: Two payment dates and one filing date

In the context of companies with a long accounting period, the requirement for tax payments typically involves a structured schedule that aligns with the periods of assessment and submission. For such companies, there are generally two payment dates that reflect the staggered nature of tax payments. These payments are typically made in two installments based on estimated taxable profits. It is essential for companies to adhere to these deadlines to avoid penalties or interest on late payments. Additionally, there is one filing date associated with the submission of the company tax return. This filing date is relevant for companies to report their earnings, deductions, and overall tax liabilities based on the complete financial year, including any adjustments for the payments made prior. Thus, the presence of two payment dates and one filing date corresponds to the requirements for managing tax obligations for companies with extended accounting periods effectively. This structure allows for a balance between timely payment and comprehensive reporting, which is critical for compliance.