The Securities and Exchange Commission on Thursday launched an amnesty program providing relief to delinquent corporations remiss in the filing of mandatory reports.
The relief is in the form of a waiver or reduction of fines forming part of efforts to encourage the regulated entities to comply with reportorial requirements under the Revised Corporation Code.
The SEC on March 15 issued SEC Memorandum Circular No. 2, Series of 2023, or 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 timely submission of reportorial requirements will also allow for the prudent identification of active and inactive corporations, and give the SEC the capacity to enhance and organize its database towards nurturing a healthy and vibrant corporate sector.
Under the guidelines, the SEC extends amnesty on the unassessed or already assessed but not yet paid fines and penalties for the non-filing or late filing of the GIS for the latest and prior years,.
The same is granted on 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.
An all-encompassing fine of P5,000 will be charged for all such violations, in lieu of the usual fines and penalties imposed by the SEC. The rates will apply provided that the corporation or entity submit the latest reportorial requirement due at the time of the application, and comply with MC 28.
The P10,000-penalty for non-compliance with MC 28 is waived.
Suspended and revoked corporations, including those who filed for the lifting of suspension or revocation, are given a 50 percent reduction on their assessed fines, encompassing all violations on the non-filing and late filing of GIS and AFS.
Stock corporations who fail to submit their GIS or AFS are currently fined P1,000 up to P10,000 per report per year, depending on the retained earnings from their latest AFS.
Non-stock corporations have corresponding fines of P500 to P5,000 for non-filing of their GIS and AFS. Late filing of reportorial requirements for both stock and non-stock corporations are imposed a fine equivalent to 50 percent of the above-mentioned rates.
The amnesty is extended to corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations and foundations. It also covers associations, partnerships, and persons under the jurisdiction and supervision of the Commission that failed to comply with MC 28.
The amnesty, however, does not cover corporations whose securities are listed on the Philippine Stock Exchange; those whose securities are registered but not listed on the PSE; those considered as public companies; those with intra-corporate dispute; those with disputed GIS; and other corporations covered under Section 17.2 of Republic Act No. 8799, or the Securities Regulation Code.
