SEC grants amnesty on late filing, non-filing of reports
The Securities and Exchange Commission had granted an amnesty on the late and non-filing of certain reportorial requirements to corporations and other regulated entities.
The SEC on March 15 issued Memorandum Circular 2 s. 2023, or the Grant of Amnesty for Non-filing and Late Filing of General Information Sheet (GIS) and Annual Financial Statement (AFS), and Non-Compliance with Memorandum Circular 28 s. 2020 (Requirement for Corporations, Partnerships, Associations, and Individuals to Create and/or Designate E-mail Account Address and Cellphone Number for Transactions with the Commission).
The amnesty is part of the SEC’s efforts to encourage regulated entities to comply with reportorial requirements under Republic Act 11232 or the Revised Corporation Code.
The submission of reportorial requirements will also allow for the identification of active and inactive corporations, and will allow the SEC to enhance and organize its database towards nurturing a healthy and vibrant corporate sector.
Under the guidelines, the SEC will provide an amnesty on the un-assessed and/or already assessed but not yet paid fines and penalties for the non-filing and late filing of 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 and 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 will 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 will be waived.
Meanwhile, 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 shall also cover associations, partnerships, and persons under the jurisdiction and supervision of the SEC that failed to comply with MC 28.
Only those which have filed an amnesty application and settled their fees on or before April 30 shall be eligible for the amnesty. The existing scale of fines and penalties shall thereafter be observed. – Press release