BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

8.

PROVISIONS (continued)

Opening balance

Over/under provision Addition Paid/reversed

Closing balance

2021/22

R’000

R’000

R’000

R’000

R’000

Levies incorrectly received*

1 791

(373)

-

-

1 418

Provision for incentive bonus** Levy funds received in excess of allocation per levies files****

11 094

(1 353)

9 311

(9 741)

9 311

33 770 46 655

-

-

-

33 770 44 499

Total

(1 726)

9 311

(9 741)

* In terms of Skills Development Circular No. 09/2013, issued by DHET on 25 August 2013, SETAs are able to utilise exempted amounts contributed after the expiry date of five years as stipulated in terms of section 190(4) of the Tax Administration Act. These amounts have been transferred to the discretionary funds in line with the aforementioned circular. The timing of settlement of this provision is uncertain as it is dependent on the operation of the SARS collection system. ** The quantum and timing of payment of incentive bonus will be considered and approved by the board subsequent to year-end. The BANKSETA policy provides for payments of bonuses by 30 September of the following year. However due to the requirement for a board decision this timing is uncertain. *** Levy funds received in excess of allocations per levies files refers to the amount of levies which BANKSETA received in excess of the levy amounts substantiated in the levy files. SARS collects levies from levy payers through the PAYE system. SARS directs the levies to DHET which in turn pays 80% of the levies to the SETAs. The levy collection system is administered by SARS and has no mechanisms or provision for SETAs to repay any excess funds paid. The BANKSETA awaits DHET to collect the excess levies on SARS instruction or for the excess amounts to be netted off another period’s levy allocation. The BANKSETA has therefore communicated with DHET and the main levy payers impacted by this to take up the matter with SARS. The timing of the collection of the excess levy funds from BANKSETA is uncertain and is dependent on SARS. The Income Tax Act provides for SARS to collect such levies as adjustments within three years. In cases where SARS does not collect these excess amounts within the three years, the BANKSETA may recognise the excess amounts as levy income after three years. As at 31 March 2022 the matter has not been resolved.

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BANKSETA ANNUAL REPORT 2022/23