Corporations now have another chance to settle their penalties for missing annual report filings with the Securities and Exchange Commission (SEC) at reduced rates until Nov. 30.
In 2023, the SEC launched an amnesty program allowing non-compliant, suspended, and revoked corporations to resolve penalties for late or missing filings. Over 81,700 companies took advantage of this, restoring their good standing.
This year, the SEC offers a second opportunity through the Enhanced Compliance Incentive Plan (ECIP) for corporations that missed the initial program.
Reduced penalty
This means companies can clear their penalties for late or non-filing of Annual Financial Statements (AFS), General Information Sheets (GIS), or failing to comply with MC No. 28, Series of 2020, by paying P20,000.
Suspended or revoked corporations can also apply to lift their status by paying a P3,060 petition fee and settling half of their total fines.
Non-compliant companies are those that failed to file their GIS or AFS in previous years.
Delinquent corporations are those that failed to file these reports three times within five years, based on SEC Memorandum Circular No. 19, Series of 2023.
SEC’s Aquino: corporations want to comply
“The amnesty program in 2023 showed that companies and associations
recognize the importance of maintaining their good standing for them to
continue enjoying the benefits of a duly registered corporation,” SEC chair Emilio B. Aquino said.
“Accordingly, the SEC wants to give non-compliant, suspended and revoked corporations, which are actually willing to comply with their reportorial requirements moving forward, the chance to settle their fines and penalties at lower rates, so that they may continue operating and contribute to a more robust and dynamic business sector,” he added.
