The Securities and Exchange Commission (SEC) is granting amnesty to companies that have yet to submit their periodic general information sheets (GIS) and annual financial statements (AFS), up September 30.
A higher penalty will take effect by October 1, the SEC said in a statement.
The SEC said the amnesty, which comes in the form of a waiver or reduction of fees, is part of the Commission’s efforts to encourage its regulated entities to comply with their reportorial requirements under Republic Act No. 11232, or the Revised Corporation Code.
The SEC said around 40,000 corporations have completed their amnesty application with the SEC, allowing them to reclaim their good standing or corporate registration with the SEC.
On June 30, the SEC streamlined the amnesty application process in order to encourage more corporations to avail of the program.
The SEC is currently preparing guidelines for the new set of fines and penalties for the late and non-filing of reportorial requirements that will be imposed starting October 1.
Under the proposed guidelines, the late filing of reportorial requirements by domestic stock and non-stock corporations with retained earnings of less than P100,000 will incur fines at a base amount of P5,000 for the first offense, which will increase to P9,000 for the fifth offense.
“There will also be a P1,000 monthly fine for every month of the continuing violation,” the SEC said.
Non-filing of reportorial requirements by both stock and non-stock corporations with retained earnings of less than P100,000 will incur fines of P10,000 for the first offense up to P18,000 for the fifth offense, plus a fine of P1,000 for every month of the continuing violation.
“If non-compliant, suspended, and revoked corporations will not avail of the amnesty, they will be subject to an estimated 90 percent increase in the payment of fines and penalties for late and non-submission of reportorial requirements starting October 1,” the SEC said.
The SEC may declare a corporation under delinquent status after it has failed to submit its reportorial requirements for three times, consecutively or intermittently within five years.
“The Commission can also revoke a corporation’s registration should it incur a fourth offense and it has been given reasonable notice regarding its delinquent status,” the SEC said.
