Page 37 - Nexia SAB&T Property & Tax Guide 2022

The CSOS levy is included in the monthly levy that owners pay to their managing agent in
return for the above-mentioned functions. The managing agent/trustees then pay the amounts
collected from owners for the CSOS levy over to CSOS once a year.
Should a community scheme, or person, fail to pay a levy or amount due to the CSOS on the
date due and payable, interest on that amount is payable for the period it remains outstanding
at a rate prescribed by the National Credit Act (34 of 2005), as amended.

ANNUAL RETURNS, ANNUAL FINANCIAL STATEMENTS, CERTIFICATES AND FORMS
Every community scheme must file an annual return, and a copy of its annual financial
statements with the Ombud Service, in the prescribed form, within 4 months after the end of
the community scheme’s financial year.
PROMOTION OF GOOD GOVERNANCE, TRAINING AND EDUCATION
Duties of Scheme Executives
A scheme executive (which includes Trustees of a Sectional Title body corporate, the board of
directors of a share block company, and the management association of any housing scheme
for retirement persons), must inform and educate himself about the community scheme,
legislation and governance documentation, as well as obtain sufficient information and advice
about all matters to be decided by scheme executives. He or she must attend all meetings
of the scheme executives and attend the Annual General Meeting (unless excused by the
Chairperson), exercise due diligence and act in a fiduciary capacity at all times.
Fidelity Insurance
Every community scheme is obliged to obtain fidelity insurance and insure against the risk
of loss of money belonging to the scheme, as a result of any act of fraud or dishonesty
committed by any “insurable person”, which means a scheme executive, an employee or
agent of a community scheme, who has control over the money of a community scheme, a
managing agent, and a contractor, employee or other person acting on behalf of or under the
direction of a managing agent, who in the normal course of the community scheme’s affairs
has access to or control over the monies of the community scheme.

OFFENCES AND PENALTIES
CSOS aims to keep Trustees and members of the body corporate in line, in that it provides
that any person is guilty of an offence, and is liable, on conviction, to a fine or imprisonment
for a period not exceeding five years or to both a fine and such imprisonment, where he or
she contravenes the Act. The list of offences to which this provision applies are set out in
Section 34.
35