Did you know that all companies and close corporations are required to submit either Annual Financial Statements or Financial Accountability Supplements when filing their Annual Return?
As of 1 July 2018, it became mandatory for companies to either file their Annual Financial Statements via eXtensible Business Reporting Language (XBRL) or a Financial Accountability Supplement with the Companies and Intellectual Properties Commission (CIPC).
If you have filed an Annual Return since 1st July 2018 and have not submitted either your Annual Financial Statements or a Financial Accountability Supplement you could be deemed non-compliant with Section 33 of the Companies Act. Failing to do so can result in your company being investigated and being issued with a Compliance Notice.
If you do not adhere to the Compliance Notice, CIPC can apply to the court to impose an administrative fine of 10% of your entity’s turnover for the period during which you failed to comply with the Compliance Notice or a maximum amount of not less than R1 000 000.
Publicly listed entities, state owned entities, private entities with a public interest score of 350 and private entities whose Memorandum of Incorporation requires an audit have to submit their audited Annual Financial Statements to CIPC.
To find out more, contact your closest Moore Stephens firm