The Securities and Exchange Commission (SEC) Philippines has extended the deadline until June 30, 2023 of all amnesty applications for late and/or non-filing of audited Annual Financial Statements (AFS), General Information Sheet (GIS), and compliance with MC 28, s. 2020 or the efAST enrollment. The amnesty program is part of the Commission’s effort to encourage the entities to comply with their reporting obligations or requirements under Republic Act No. 11232, or the Revised Corporate Code of the Philippines.
This extension was granted through MC No. 6, Series of 2023 (MC 6-2023), which modified MC 2-2023 taking advantage of the amnesty program will now have a 90-calendar day period, instead of the previous 45 days, starting from the date of payment of the fixed amnesty amount, to submit their most recent Annual Financial Statements (AFS).
If the required submissions are not completed within the 90-day period following payment, it will be considered a waiver of the amnesty procedure. In such cases, the payment made will be forfeited in favor of the SEC, and no further benefits will be granted.
The SEC is currently reassessing fines and penalties and has introduced an amnesty program to encourage compliance and improve the submission process for regulated entities. The aim is to enhance the SEC’s database, promote adherence to laws and regulations, and discourage violations. Companies are urged to take advantage of the amnesty opportunity rather than waiting until the approaching deadline.
After the extended June 30 deadline, the SEC will implement an updated scale of fines and penalties for the late filing and non-filing of the covered reportorial requirements, which are scheduled to take effect on July 1, 2023.
The SEC’s proposed changes include a 20% increase in the base penalty for each offense, the imposition of a monthly fine of P1,000 (Corporations could face fines ranging from 27,000 pesos to 54,000 pesos, and they may also be subject to a monthly fine ranging from 500 pesos to 1,000 pesos, based on their retained earnings) for continuing violations until the required reports are submitted, potential delinquency classification for corporations failing to submit reporting requirements three times within a five-year period, registration revocation starting from the fourth offense, and considering foreign corporations as non-compliant/non-filing if they exceed a 30-day delay from the prescribed filing period.
Need further information and assistance regarding Securities and Exchange Commission (SEC)? Talk to our team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.
