CIMA F1 Syllabus C. Fundamentals Of Business Taxation - Administration of Tax - Notes ^{2 / 10}

The following normally must be kept:

1. Company income tax and capital gains tax calculations

2. Employee pay, income tax and social security contributions for employee tax

3. All sales and purchases subject to VAT

4. Transfer prices for intra-group sales with overseas subsidiaries

Retention of Records

They must usually be kept for 6 years

Deadlines

These could be:

1. When the tax has to be paid - interest penalties if late

2. When the tax return must be submitted

3. When employee records re tax must be sent in

4. VAT returns dates and payment deadlines

Reasons for governments to set deadlines

1. It enables the tax authority to forecast its cash flow more accurately.

2. It provides a reference point for penalties for late payment.

3. So that tax payers know when to pay their taxes.

Penalties

For things such as:

1. Late Returns

2. Errors on Returns

3. Late payment of Tax