CIPC Annual Report V1

Companies and Intellectual Property Commission Annual Financial Statements for the year ended 31 March 2021 Notes to the Annual Financial Statements

2021

2020

R '000

R '000

27. Taxation

Income tax

The entity is not liable for income tax in terms of section 10(1)(a) of the Income Tax Act, as amended.

Value-added tax

The entity is exempt from value-added taxation in terms of a Tax Authorities' directive.

28. Contingencies

Contingent liabilities

Accumulated surplus

515 593

118 334

In terms of section 53(3) of the PFMA the entity at the end of the financial year needs to declare any surplus to the National Treasury. The National Treasury may apply such surplus to reduce any proposed allocation to the entity; or require that all or part of it be deposited in the Exchequer bank account.

Surplus for 2020/21

A declaration of the cash surplus as at 31 March 2021 will be submitted to the National Treasury, together with an application to retain such surpluses in terms of section 53(3) of the PFMA and National Treasury instruction No 12 of 2020/2021.

Surplus for 2019/20

A declaration of the cash surplus as at 31 March 2020 was submitted to the National Treasury on 31 July 2020. An application to retain such surplus was also submitted in terms of section 53(3) of the PFMA and National Treasury instruction No 6 of 2017/2018.

Enterprise Content Management System (ECM)

10 090

10 090

Legal proceedings have been instituted by the service provider challenging the legal validity of the termination of the contract, and seeking payment of certain fees rendered in terms of the contract prior to its termination. The litigation is in process and the outcome is uncertain. The value of the contingent liability was assessed based on the latest correspondence in the matter.

29. Planned capital programmes

The following capital programmes were approved and contracted:

Head Office Computer equipment: PC's

323 271

7 653

Software investment in ICT system: K2

-

594

7 653

The following capital programmes were approved but not yet contracted:

Head Office and Self service centres Furniture and equipment

2 200 1 000

1 320

Leasehold improvements - Head office and Self service centres

105 400 162 547

Investment in ICT systems for improved service delivery: Hardware and Software

62 136

65 336

269 267

31

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

101