The Securities and Exchange Commission (SEC) has reminded companies to avail its ongoing holiday for fines on standing deficiencies in annual filings until November 30.
The holiday follows the amnesty the SEC extended to erring companies between July last year and March this year.
The SEC said the amnesty enabled 81,700 companies to regain their good standing with its office.
“This year, the SEC is allowing non-compliant, delinquent, and suspended or revoked corporations that missed the amnesty program another chance to clear their track record of noncompliance by availing of the Enhanced Compliance Incentive Plan (ECIP),” the SEC said.
Under ECIP, corporations that incurred fines and penalties for late or non-filing of their annual financial statements (AFS), general information sheets (GIS), and noncompliance with MC No. 28, Series of 2020 can get back their good standing for only P20,000.
MC 28 requires corporations to designate and submit official and alternative mobile phone numbers and email addresses for their transactions with the SEC.
“Suspended or revoked corporations could also apply for the lifting of the order suspending or revoking their corporate registration by paying a petition fee of P3,060, and settling only 50 percent of their total assessed fines and penalties,” the SEC said.
Emilio Aquino, SEC chairman, said ECIP will enable companies to maintain good standing “for them to continue enjoying the benefits of a duly registered corporation.”
“Accordingly, the SEC wants to give non-compliant, suspended and revoked corporations, which are actually willing to comply with their reportorial requirements moving forward, the chance to settle their fines and penalties at lower rates, so that they may continue operating and contribute to a more robust and dynamic business sector,” he said.
Eligible corporations include stock and non-stock corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign companies.
A company considered public – either listed or not with the Philippine Stock Exchange (PSE); has a registered securities; has intra-corporate dispute; has a disputed GIS; and has an expired corporate term cannot avail of the ECIP, the SEC said.
“Eligible corporations may apply for ECIP through their respective company accounts on the SEC Electronic Filing and Submission Tool (eFAST),” the SEC said.
Corporations who do not avail of ECIP, face higher penalties for non-compliance with their reportorial requirements based on the latest guidelines of the SEC on fines.
“The updated scale of fines and penalties are at least 900 percent higher than the previous rates that had been in place for more than 22 years,” the SEC said.
