ACCA Advanced Taxation (ATX) Practice Exam

What are the quarterly instalment dates for a large company under corporation tax?

1. 14th day of months 6, 9, 12, and 15

2. 14th day of months 5, 8, 11, and 14

3. 14th day of months 7, 10, 13, and 16

4. 15th day of months 6, 9, 12, and 15

The correct answer is: 14th day of months 7, 10, 13, and 16

For large companies under corporation tax, the regulations specify the quarterly instalment payments that need to be made to ensure timely compliance with their tax obligations. The correct instalment dates are aligned with the company's accounting period and are set to occur four times throughout the year at specific intervals. The correct answer indicates that the quarterly instalment dates are on the 14th day of the seventh, tenth, thirteenth, and sixteenth months following the end of the accounting period. These dates are intended to assist large companies in spreading their tax liabilities evenly throughout the year and facilitating better cash flow management. It is important to recognize that these specific dates influence when companies must calculate and submit their payments, ensuring that they meet their tax obligations without incurring penalties for late payment. The positioning of these dates is designed to harmonize with the financial year commonly used by large corporations. In contrast, the other answer options provide incorrect months that do not align with the established corporate tax calendar for large companies. Each option suggests either the wrong sequence of months or incorrect days for payment, deviating from the statutory requirements. Understanding the correct instalment dates is essential for large companies to comply with corporation tax regulations effectively.