CAC REMINDS BUSINESSES THAT TAX PAYMENTS DO NOT REPLACE ANNUAL FILINGS

The Corporate Affairs Commission has reminded businesses and other registered organisations that paying taxes does not replace the requirement to file annual returns with the commission. The clarification is aimed at helping business owners understand that the two obligations serve different purposes and must be treated separately.

According to the CAC, annual returns are filings made by registered entities to provide updated information about their operations and confirm their continued status on the commission’s register. The obligation generally applies to registered entities regardless of whether they were actively operating during the relevant period, meaning an inactive business may still be required to meet its filing obligations.

Tax payments, on the other hand, are connected to a business’s tax responsibilities arising from its activities and income. The commission therefore stressed that settling tax liabilities does not automatically mean that a company or other registered entity has fulfilled its annual returns requirement.

The annual returns obligation covers several categories of entities registered with the CAC, including companies, business names and incorporated trustees. Incorporated trustees may include organisations such as non-governmental organisations, religious bodies and cultural associations. Failure to file returns can attract penalties and create compliance problems for affected entities.

Businesses can file their annual returns through the CAC’s online platform. Depending on the type of entity, the process may require updating registration details, providing information such as turnover and net assets, submitting financial statements or audited accounts where applicable, selecting the relevant financial year and completing the submission. The commission advised registered entities to keep their records and filings up to date to avoid penalties and possible consequences, including deregistration for prolonged default.