THE Securities and Exchange Commission (SEC) has extended the deadline for amnesty applications for late and non-filing of annual financial statements, general information sheets, official email addresses, and mobile phone numbers.
In Memorandum Circular No. 6 of 2023, the regulator said on Friday that eligible companies have until June 30 to complete the requirements for amnesty application under Memorandum Circular No. 2.
The commission extended the deadline for amnesty applications due to the number of companies expressing interest in availing of the program and an overlap in submission dates with the Bureau of Internal Revenue.
“The SEC launched the amnesty program for non-compliant corporations, as well as those whose certificates of registration have been suspended or revoked, in the middle of March through SEC Memorandum Circular No. 2, Series of 2023,” it said in a statement.
The regulator has also extended to 90 days from the date of payment to submit companies’ latest financial statements. It previously set the date of submission to 45 days.
“The amnesty program is part of the commission’s efforts to encourage its supervised entities to comply with their reportorial requirements under Republic Act No. 11232 or the Revised Corporation Code of the Philippines,” the SEC added.
Additionally, the SEC seeks to identify active and inactive corporations by enhancing and organizing its digital database.
After the deadline passes updated penalties and fines will be implemented for noncompliance with the requirements on July 1.
The regulators had previously disclosed that it was considering an increase in fines and penalties imposed on corporations for the late and non-filling of reportorial requirements.
The SEC said that it will raise penalties by 20% from the base penalty per offense. These will be imposed on a per report and per year basis with an additional monthly fine until the requirements are submitted.
Corporations may be fined up to 27,000 and P54,000 with an additional monthly fine of P500 up to P1,000 depending on their retained earnings. — Adrian H. Halili
