During the year ended 30 June 2015 Barry Ltd, pays quarterly tax instalments as follows: €4000 on 28 October 2014
€11 000 on 28 February 2015
€12 000 on 28 April 2015
On 30 June 2015, Barry Ltd determines its total current tax liability for the year to be €33 000.
The final tax instalment for the year will be:
A) a refund of €2000;
B) a payment of €6000;
C) a payment of €12 000;
D) a payment of €33 000.

Question

Quizplus · Accepted Answer

The total tax paid during the year is €27,000 (€4,000 + €11,000 + €12,000). The current tax liability for the year is €33,000. Therefore, the final tax instalment will be a payment of €6,000 (€33,000 - €27,000). Option B is the only answer that represents a payment of €6,000.

During the Year Ended 30 June 2015 Barry Ltd, Pays