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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

The due date for the annual return under section 44 for a financial year is 31 December of the following year. Under section 62(1), within what period must the assessment order for tax not paid relating to that financial year be issued?

The order must be issued within five years from the due date for furnishing the annual return under section 44 for the relevant financial year. The period runs from that annual return due date, not from the end of the financial year.

  1. AWithin five years from 31 December of the following yearCorrect
  2. BWithin five years from the end of that financial year
  3. CWithin three years from 31 December of the following year
  4. DWithin sixty days of the notice under section 46

Explanation

Section 62(1) fixes the limit at five years from the date specified under section 44 for furnishing the annual return for the financial year to which the unpaid tax relates. Counting from the end of the financial year is the wrong base, and the sixty-day period concerns filing after the order, not its issue.

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