Which past UK system required a company to pay tax in advance when it paid a dividend?
AAdvance corporation tax
BFranking credit scheme
CGroup relief scheme
DBranch profits tax
Answer & Solution
Correct answer: A. Advance corporation tax
Advance corporation tax (ACT) was paid on dividends and then used to offset the company's own tax.
Keep practising Taxation of Companies
Browse all Taxation of Companies questions for CA Final, or explore more Taxation topics.
Related questions
Which section imposes a late fee for delay in filing the return?Under-reported income attracts a penalty of what share of tax under section 270A?A defective return must be rectified within how many days of notification?A revised return to correct an omission is filed under which section?Which section governs a belated income-tax return?Cumulatively, what share of advance tax must be paid by 15 December?What is the rate of health and education cess levied on the tax of a company in India?Income tax is generally computed as tax rate multiplied by what?