ACCA ATX ^UK Syllabus A6. Value Added Tax - The features of self- assessment system for companies - Past Papers ^{2 / 2}

Luiza, the finance director of Damiana plc, requires advice on the consequences of the late filing of its recent corporation tax returns.

Damiana plc:
– Is a UK resident quoted trading company.

Damiana plc – late filing of corporation tax returns:
– Damiana plc prepared accounts for the 18-month period ended 31 March 2016.
– The corporation tax returns for this period were filed on 15 July 2017.
– All previous corporation tax returns have been filed on time.

Required:
(b) Identify the accounting periods for which corporation tax returns were required from Damiana plc in respect of the 18-month period ended 31 March 2016. State the due date(s) for filing the returns in each case, and the implications for Damiana plc in respect of their late filing. (3 marks)

Klubb plc, a client of your firm, requires advice on the penalty in respect of the late filing of a corporation tax return.

Klubb plc:
– Is a UK resident trading company.
– Has been charged a penalty in respect of the late filing of corporation tax returns.
– Intends to establish an approved tax-efficient share plan.
– Purchased 30% of the ordinary share capital of Hartz Co from Mr Deck on 1 April 2014.

Late filing of corporation tax returns:
– Klubb plc prepared accounts for the 16-month period ended 31 March 2013.
– The corporation tax returns for this period were filed on 31 May 2014.

Required:
(a) State the corporation tax returns required from Klubb plc in respect of the 16-month period ended 31 March 2013 and the due dates for filing them. Explain the penalties which may be charged in respect of the late filing of these returns. (4 marks)