The Securities and Exchange Commission is granting corporations and other regulated entities an amnesty on the late and non-filing of certain reportorial requirements.
It issued SEC Memorandum Circular No. 2, Series of 2023 on March 15 entitling companies to the amnesty for non-filing or late filing of general information sheet and annual financial statement.
SEC in a statement said the amnesty, which will come in the form of a waiver or reduction of fines, is part of its efforts to encourage its regulated entities to comply with reportorial requirements under Republic Act No. 11232 or the Revised Corporation Code.
“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,” the SEC said.
Under the guidelines, the SEC will provide an amnesty on the unassessed and/or already assessed but not yet paid fines and penalties 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.
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.
Companies availing of the amnesty will be required to submit the latest reportorial requirement due at the time of the application.
Suspended and revoked corporations, including those which have filed for the lifting of suspension or revocation, will be given a 50 percent reduction on their assessed fines, encompassing all violations on the non-filing and late filing of GIS and AFS.
The amnesty will be extended to corporations, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations and foundations. It will also cover associations, partnerships and persons under the jurisdiction and supervision of the SEC.