The Securities and Exchange Commission (SEC) said companies with reportorial deficiencies have only a month left to take advantage of the penalty holiday it is extending.
The penalty holiday is a chance for companies to clear their record and avoid higher fines and penalties for the late and non-filing of reportorial requirements.
“With less than a month left before we officially close ECIP (Enhanced Compliance Incentive Plan), we encourage non-compliant, suspended and revoked corporations to complete their applications to ensure the continuous operations of their businesses,” said Emilio Aquino, SEC chairman.
“We remind corporations that the submission of reportorial requirements is mandated by law, and failure to comply could result in the suspension or revocation of their corporate registration,” Aquino said.
The SEC in August issued Memorandum 13-2024 giving eligible corporations a final chance to regain their good standing and pay penalties at significantly lower rates under ECIP, which will end November 30.
Under the program, non-compliant corporations, including those under the delinquent status, shall pay only P20,000 to settle their fines and penalties for the covered violations, while suspended or revoked corporations will only have to pay 50 percent of their total assessed penalties, and a petition fee of P3,060 to lift their order of suspension/revocation.
Eligible corporations will have to submit their latest due audited financial statements and general information sheets as part of their application.
Suspended/revoked firms will also have to submit their petition to lift the order of suspension or revocation, along with other supporting documents.
The SEC said eligible companies that fail to avail of ECIP will be slapped with an updated scale of fines and penalties that was implemented since April this year.
“The new rates are around 900 percent to 1,900 percent higher compared to the previous rates that had been in place for more than two decades,” it said.
The application process is fully online. To apply for ECIP, corporations should log in their respective accounts on the SEC Electronic Filing and Submission Tool (eFAST) and pay the fees through Electronic System for Payments to the SEC (eSPAYSEC).
