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A couple of questions
– How well do yo need to show your estimation to the tax authorities. If you are close to the 1,5M limit, can you say you estimated 1,4 and therefor avoid quarterly payments?
– You said in the lectures that the quarterly payments can be amended if you see a change in estimate of profit. If an event occurs which makes you believe there will be a loss after you already paid 2 quarters in advance, will those be refunded directly or first when the tax return is filed?
Basically my questions are around how flexible your estimations can be and how it will affect the advance payments and being a big company (1,5 limit).
The company has a duty to make an honest estimate but as stated in the lecture the first estimate is made only half way through the accounting period so a better estimate should be possible as the company gets closer to and then following the end of the accounting period. Where under estimates are made then interest will be payable from the date the payment was due until the date the payment was made – if a company estimated it was not going to be large and turned out in fact to be large then substantial interest payments would clearly be payable in relation to the missed payments!
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