September 23, 2024 | 12:00am
MANILA, Philippines — The Securities and Exchange Commission (SEC) is providing corporations another chance to avoid higher penalties following its successful amnesty program last year.
Non-compliant, suspended and revoked corporations are currently given the opportunity by the SEC to clear their penalties for failure to file their annual reports at lower rates until Nov. 30.
The SEC said corporations that incurred fines and penalties for the late or non-filing of their annual financial statements (AFS), general information sheets (GIS) as well as for noncompliance with the requirement of designating and submitting official and alternative mobile phone numbers and email addresses for their transactions, can get back their good standing for only P20,000 under the Enhanced Compliance Incentive Plan (ECIP).
Suspended or revoked corporations could likewise 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 amnesty program in 2023 showed that companies and associations recognize the importance of maintaining their good standing for them to continue enjoying the benefits of a duly registered corporation,” SEC chairperson Emilio Aquino said.
“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.
Last year, the SEC gave non-compliant, suspended and revoked corporations a chance to settle their fines and penalties for the late and non-filing of their reports through an amnesty program.
According to the commission, over 81,700 corporations were able to complete their applications and get back their good standing throughout the program’s nine-month run.
Through the ECIP 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.
The SEC said corporations which will not avail of ECIP face higher penalties for noncompliance with their reportorial requirements.
The commission said that 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.
A corporation is considered non-compliant by the SEC if it has not submitted its GIS and AFS intermittently or consecutively in previous years and/or has not complied with the requirement of designating and submitting official and alternative mobile phone numbers and email addresses for transactions.
Delinquent corporations, meanwhile, are those that have not filed their AFS or GIS for three times, consecutively or intermittently, within a period of five years.
Be the first to comment