ACCA Advanced Taxation (ATX) Practice Exam

How long after the end of a long accounting period does a company have to file its return?

1. 9 months

2. 12 months

3. 6 months

4. 18 months

The correct answer is: 12 months

In the context of corporate tax returns, companies typically have a period following the end of their accounting year to file their tax returns. The correct choice of 12 months reflects the standard time frame allowed for companies to submit their tax returns after the conclusion of their accounting period. This allows businesses adequate time to finalize their financial statements and complete the necessary tax calculations based on those statements. This extended period is particularly advantageous for companies with complex financial scenarios, as it permits thorough preparation and ensures compliance with tax obligations. It's important for businesses to keep accurate records during this time to facilitate the preparation of their returns and reduce the risk of errors that could lead to penalties or audits.