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What can happen if a company does not file tax returns on time?

Answer and explanation

Correct answer: A penalty may be imposed and legal action may be taken

Filing tax returns within the prescribed time limit is part of a company's legal compliance. Delay or non-filing can result in penalties, interest, or legal action under applicable tax laws, so option A is correct. Non-filing does not give a company a tax exemption or an automatic refund. Exam tip: In the legal environment, non-compliance commonly leads to penalties, sanctions, or legal action.

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Business EnvironmentLegal EnvironmentTax ComplianceCompany LawClass 12Business StudiesClass 12 Mcq

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