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IDC Exempted from PFMA on New Entities

February 23, 2021

National Treasury

The Industrial Development Corporation (IDC) has been exempted for three years from informing national treasury on any new entities it seeks to set up.

National treasury announced the exemption in Government Gazette 44173 in terms of Section 92 of the Public Finance Management Act.

Section 51(1)(g) of the act stipulates that accounting authorities of public entities “must promptly inform the National Treasury on any new entity which that public entity intends to establish or in the establishment of which it takes the initiative, and allow the National Treasury a reasonable time to submit its decision prior to formal establishment”.

The IDC has also been exempted from Sections 52 and 55 of the act for three years.

Section 52 focuses on the annual budget and corporate plan by Schedule 2 public entities and government business enterprises while section 55 deals with the annual report and financial statements.

In Notice 51, treasury published the explanatory summary for the Draft Division of Revenue Bill for the 2021/22 financial year.

The draft bill provides for:

• the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2021/2022 financial year;
• the determination of each province’s equitable share of the provincial share of that revenue;
• any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and for any conditions on which those allocations may be made; and
• matters connected therewith.

The draft bill will be tabled in parliament on Wednesday during Budget 2021.

In Gazette 44171, the South African Revenue Service republished the notice on the extension of the deadline to file country-by-country returns in terms of Section 25(7) of the Tax Administration Act.

The notice was first published in Gazette 44170 on 18 February 2021.

The deadline applies to Reporting Fiscal Years commencing before 1 July 2020.

The deadline is extended to 30 June 2021 for those required to file by 31 December 2020 or 31 January 2021 while the deadline for those required to file by 28 February 2021, 31 March 2021, 30 April 2021, 31 May 2021 and 30 June 2021 is extended to 30 July 2021.