SEC Grants Amnesty for Late or Non-Filing of Reportorial Documents in the Philippines
The Securities and Exchange Commission (SEC) granted amnesty to businesses and other registered entities for late and non-filing of certain reportorial documents.
SEC released Memorandum Circular No. 2 last March 15, granting amnesty for the late and non-filing of the general information sheet (GIS) and annual financial statement (AFS). The memorandum also covers non-compliance with the Memorandum Circular No. 28 of 2020.
This amnesty, which comes in the form of waivers or reduced fines, is part of the SEC’s aim to encourage regulated businesses to comply with the reportorial documents under the Republic Act 11232 or the Revised Corporation Code.
The submission of the required documents allows for the proper identification of active and inactive entities. This allows the SEC to enhance and organize its database towards the corporate sector.
Moreover, the SEC imposes a fine of ₱5,000 for all violations. The rates will apply if the corporation or entity submits the latest document due at the time of filing and complies with MC 28.
Suspended and revoked entities, including corporations that filed for the lifting of suspension or revocation, would have a 50% reduction on their assessed fines. This encompasses all violations on the non-filing and late submission of GIS and AFS.
According to the guidelines for imposition of fines or penalties for non-compliance with the required documents, stock corporations that fail to file their GIS or AFS are penalized with a fine ranging from ₱1,000 to ₱10,000 per report annually.
Meanwhile, a corresponding fine of ₱500 to ₱5,000 will be imposed on non-stock corporations for non-filing of their GIS and AFS. The late filing of reportorial requirements for both stock and non-stock corporations has a fine equivalent to 50% of the above-mentioned rates.
The amnesty covers corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign corporations and foundations. However, it will not include corporations with listed securities on the Philippine Stock Exchange (PSE), entities with registered but not listed securities on the PSE, and public companies.