The Department of Finance (DOF) is encouraging corporations that have incurred penalties or whose certificates of registration have been suspended or revoked due to the late and non-filing of reportorial requirements to avail of the Securities and Exchange Commission’s (SEC) amnesty program.
“The amnesty offered by the SEC is a great opportunity for eligible corporations to start anew, maintain their good standing and ensure that they will continue enjoying the benefits and advantages of being a corporation,” Finance Secretary Benjamin Diokno said in a statement yesterday.
Issued on March 15, 2023, SEC Memorandum Circular No. 2, Series of 2023 provides for the Grant of Amnesty for Non-filing and Late Filing of the General Information Sheet (GIS) and Annual Financial Statement (AFS), and Non-Compliance with Memorandum Circular No. 28, Series of 2020 (MC 28).
The SEC subsequently issued on April 25, 2023, SEC Memorandum Circular No. 6, Series of 2023 to extend the deadline for applications for amnesty to June 30, and to give applicants a longer period of 90 days within which to submit certain requirements.
After the extended deadline of June 30, an updated scale of fines and penalties for the covered reportorial requirements shall be implemented.
“The success of the amnesty program will ultimately redound to the benefit of the corporate sector, investors, consumers and other stakeholders,” Diokno said.
“Furthermore, it will give government agencies insights on how to better supervise and support corporations,” he added.
Under the guidelines, the SEC will provide amnesty on the unassessed and/or already assessed unpaid fines and penalties imposed by the Commission for the non-filing and late filing of the GIS for the latest and prior years, as well as the non-filing and late filing of AFS, including its attachments such as the Certificate of Existence of Program/Activity, Non-Stock, Non-Profit Organization Forms, for the latest and prior years.
The amnesty program reduces the penalty for the non-filing and late filing of GIS and AFS for non-compliant corporations to P5,000. The rates will apply provided that the corporation or entity will submit the latest reportorial requirement due at the time of the application, and comply with MC 28.
Meanwhile, revoked or suspended corporations will only need to settle 50 percent of the total assessed fines, encompassing all violations on the non-filing and late filing of GIS and AFS.
Furthermore, the P10,000 fine for the noncompliance with MC 28 for both non-compliant and revoked or suspended corporations will be waived.
