BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022

8.

PROVISIONS

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

1 791 11 094 33 770 46 655

(373)

-

-

1 418 9 311

(1 353)

9 311

(9 741)

-

-

33 770 44 499

Total

(1 726)

9 311

(9 741)

Opening balance

Over/under provision Addition

Paid/ reversed

Closing balance

2020/21

R’000

R’000

R’000

R’000

R’000

Levies incorrectly received* Provision for incentive bonus** Levy funds received in excess of allocation per levies files*** Provision for acting allowances

1 495

-

296

-

1 791 11 094

10 542

(626)

10 198

(9 020)

-

- -

33 770

-

33 770

54

-

(54)

-

Total

12 091

(626)

44 264

(9 074)

46 655

* 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 incentive bonus will be considered and approved by the board subsequent to year-end. The BANKSETA policy provides for payments of bonus by 30 September of the following year. However due to the requirement for a board decision the timing is uncertain. *** TheBANKSETAhas therefore communicatedwithDHETand themain levy payers impactedby this to take up thematter withSARS. The timing of the collection of the excess levy funds fromBANKSETAis uncertain and is dependent on SARS. The Income TaxAct 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 BANKSETAmay recognise the excess amounts as levy income after three years.As at 31March 2022 the matter has not been resolved.

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PART E: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2021/22