The Companies and Intellectual Property Commission (“CIPC”) published a proposed Compliance Checklist during August of 2019.
Entities were afforded an opportunity comment on the proposed Compliance Checklist and to complete the checklist voluntarily from 1 September 2019 to 31 December 2019.
Since 1 January 2020 it has become mandatory in terms of Notice 52 of 2019 to complete the Compliance Checklist before submitting annual returns on behalf of companies.
However a number of stakeholders across a broad spectrum of professional bodies, small business associations, and individual professionals have engaged with the CIPC since 2019 to obtain more clarity on what is required. As a result of ongoing discussions and consultations between all these stakeholders, including SAIBA the CIPC indicated a possible change in the extent of the compliance requirements.
One option on the table was to make the checklist only applicable to companies with a particular public interest risk measured by its Public Interest score or reporting status as either subject to an audit or independent review.
As far as we understand these talks are still ongoing and we will continue to engage CIPC and motivate for a less onerous checklist. We support the proposal to limit the checklist to companies that pose a significant risk to the economy due to their size, complex transactions that impact pension funds and the broader investment sector.
We wish to inform our members and their clients that the possible changes are still in discussion phase with the CIPC expected to issue an amended notice soon.
We made available a training course to assist in completing the checklist. It is available on www.saiba.academy and shared our views in our online news portal, www.AccountingWeekly.com:https://accountingweekly.com/cipc-launches-new-online-compliance-checklist/https://accountingweekly.com/cipc-compliance-checklist-raises-concerns/https://accountingweekly.com/cipc-abolishes-compliance-checklist-for-small-business-after-intense-lobbying-by-the-accounting-profession/
Until we have a final notice from the CIPC we urge members to obtain an instruction from their clients on whether to submit the current Checklist or postpone submission until more clarity is received. It is unfortunately a timing issue but clients need to understand the risks to make informed decisions.
Issued by: Office of SAIBA the CEO, Nicolaas van Wyk