THE SECURITIES and Exchange Commission (SEC) is urging corporations and associations to avail of its amnesty program as it is set to implement a new set of fines for late or non-filing of disclosure requirements.
“We reiterate our reminder to all corporations that starting a business does not end with registration with the SEC. This is just the first step — they must faithfully comply with reportorial requirements thereafter to ensure their continuity and sustainability,” SEC Chairman Emilio B. Aquino said in a statement over the weekend.
The commission said that about 40,000 firms have filed amnesty applications, which are a waiver or reduction of fees, allowing them to fully comply with reportorial requirements.
“The SEC Amnesty Program is a chance for corporations and associations to get a fresh start in their compliance with reportorial requirements, so they continue to enjoy the benefits and privileges of being a registered corporation,” Mr. Aquino added.
The regulator said that the deadline for the submission of amnesty application is set on Sept. 30, a further extension of the SEC’s earlier memorandum with an initial deadline of June 30.
“Corporations that are able to submit their correct reportorial requirements, including those reverted for compliance… will be considered to have undergone the complete amnesty process and are entitled to receive a Confirmation of Payment,” the SEC said.
The commission added that by Oct. 1, higher fines and penalties will be imposed on firms that have not yet submitted their financial reports.
It said earlier that penalties for corporations that filed their reportorial requirement late could range from P5,000 to P27,000 with an additional fine of up to P1,000 per month depending on their retained earnings.
Penalties for non-filing of reports could range from P10,000 to P18,000. A monthly fine of P1,000 will also be imposed.
Additionally, the regulator said that it would now begin to strictly impose fines for noncompliance with Memorandum Circular No. 28, which requires companies to disclose their official and alternate e-mail addresses and mobile phone numbers.
The SEC said it might place a company under delinquent status after three — consecutive or intermittent — failures to submit reportorial requirements within five years.
“The commission can also revoke a corporation’s registration should it incur a fourth offence and it has been given reasonable notice regarding its delinquent status,” it added. — Adrian H. Halili
