CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 27 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 27
Topic #: 3

The tax rules in a country state that all tax returns must be filed by 31 March each year and that any outstanding tax balance must be paid by 14 April each year. An entity filed its tax return on 10 April 20X2 and paid the outstanding tax on 20 April 20X2.

Which TWO of the following powers is the tax authority likely to have in respect of these actions by the entity?

ACharge a fixed penalty for late submission of the tax return.

BCharge interest for non-payment of the outstanding tax balance between 14 April 20X2 and 20 April 20X2.

CCharge interest for non-payment of the outstanding tax balance between 31 March 20X2 and 20 April 20X2.

DCharge interest for non-payment of the outstanding tax balance between 10 April 20X2 and 20 April 20X2.

ESeize the assets of the entity.

Show Suggested Answer

Suggested Answer: A, B

by Britt at May 07, 2022, 10:05 PM

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