Corporate tax self assesment

Corporate Tax Self Assessment(CTSA) was introduced for all companies with an accouting period ending in 1998, that is as from year of assessment 1999. Under CTSA the legal responsibility for correctly calculating the Corporate Tax liability falls squarely on you. Tax returns must be completed and filed within 9 months of the end of your accounting period, though never before 31 March of the year of assessment.

How do you pay tax?
The Inland Revenue Department makes requests on Form PT1 for provisional tax (PT) payments every 4 months. Special rules apply to PT payments in the second year of assessment.

Any outstanding tax balance must be settled within 9 months of the end of the accounting period, though never before 31 March of the year of assessment.

The Inland Revenue will charge interest on late payments and on any underpayment.

Can I reduce PT payments?
Should you determine that the current year's tax liability will be less than the PT payments, you may reduce the latter by filing the appropriate form. Any resulting underpayment will however be subject to interest. It is therefore important thay you make accurate estimates of profit and the tax payable thereon.

How can Grant Thornton help?
Grant Thornton can help your company to comply with the requirments imposed by CTSA:

• we understand the issues which face owner-managed businesses and can prepare the new tax return in a timely and efficient manner
• we can calculate the company's tax liability payable after the end of the accounting period
• we can also assist with the calculation of PT payments