Q: Why on the Modified UCA is the amount used for CMLTD based on the amount from last year instead of the amount for this year?
A: It is last year's CMLTD that are due and payable in the present year. This year's CMLTD are due and payable next year. Therefore, the UCA Cash Flow Statement captures the amount of CMLTD paid in 2021, which was the amount due and payable at the end of 2020 – the 2020 CMLTD.
Course overview: Cash Based Income Tax Returns