The Securities and Exchange Commission (SEC) said over the weekend it will impose higher penalties on companies for late and non-filing of reports in October 2023.
It said in a statement it would release a new scale of fines and penalties for the late and non-filing of reportorial requirements once the amnesty program ended by Sept. 30, 2023.
“With the stricter penalties, we hope corporations will be more mindful of submitting their annual reports on time, as these are vital in ensuring the efficient functioning of the Philippine corporate sector,” SEC chairperson Emilio Aquino said.
Aquino said the companies’ faithful compliance with filing of reportorial requirements allows the SEC to manage its corporate database better, purge inactive corporations and protect the public from fraudulent entities.
SEC-registered firms are required to submit general information sheet (GIS) and annual financial statement (AFS) yearly under the Revised Corporation Code.
Under the proposed rates, domestic stock corporations with retained earnings of not more than P100,000 would incur a basic penalty of P5,000 for the late filing of their GIS or AFS, plus P1,000 for every month of continuing violation. This represents a 900-percent increase from the current rate of P500.
Meanwhile, non-filing of GIS or AFS by domestic stock corporations and non-stock corporations with retained earnings and fund balance/equity of not more than P100,000 would be slapped with a basic penalty of P10,000, plus P1,000 per month of continuing violation.
The SEC said to avoid the higher penalties, non-compliant and those with suspended or revoked permits should take advantage of the amnesty program available.
Non-compliant corporations who avail of the amnesty will pay only P5,000 for late or non-filed reports, regardless of the number of years they failed to comply.
Suspended or revoked corporations would be allowed to pay only half of the actual penalties they incurred, plus a fee of P3,060 for the petition to lift the revocation order.