Earlier this year we published the Companies and Intellectual Property Commission (CIPC) Notice on the various arrangements that the CIPC made to cater for its services during the national lockdown amidst the COVID-19 pandemic. The CIPC subsequently confirmed in CIPC Notice 21 of 2020 that where the filing period for Annual Returns falls within the lockdown period, the deadline for filing would be extended until two weeks after the national lockdown ceases or until the CIPC communicates otherwise. If the filing period falls outside of this period, the normal prescribed filing period will be applicable. This extension of the filing period has the effect of deferring penalties, compliance checklist and preparation of annual financial statements accordingly. In CIPC Notice 34 of 2020, the CIPC further advised that the national lockdown, regardless of lockdown level, will continue to impact Companies and Close Corporations in terms of the following Regulatory Requirements:
- Preparation of Annual Financial Statements (AFS) within 6 months
- Filing of latest available set of Annual Financial Statements using iXBRL
- Filing of a Compliance Checklist as published with the relevant guidance notes
- Filing of Financial Accountability Supplements (FAS)
As the national lockdown is still in force, the extension of the filing periods, as discussed above, will continue to be in place with regards to the compliance checklist, preparation and filing of annual financial statements, and filing of financial accountability supplements.
CIPC will not issue any Compliance Notices for non-compliance if such non-compliance can be attributed to the constraints of COVID-19. However, all entities are reminded to file their “latest” sets of available AFS or FAS’s as a way of demonstrating compliance. Filing the “latest” set of AFS or FAS, when filing Annual Returns within the prescribed period will not result in any penalties. Any Annual Returns filed outside of the prescribed period will result in a penalty being incurred. The platforms for filing of the AFS, FAS and the Compliance Checklist, are available online on CIPC e-Services.