Extension of SEC amnesty program eyed

MANILA  -The Securities and Exchange Commission (SEC) may allow a “final” amnesty program extension for corporations that have failed to submit required reports and financial statements.

The deadline was already extended several times—the latest due date was set for the end of the month or by Friday—but SEC Chair Emilio Aquino told reporters the commission was likely to vote for one more extension during its en banc meeting.

“There is presently the sense of the Commission to consider an extension but a limited [time period],” Aquino told reporters on the sidelines of a partnership event with mobile wallet giant GCash before their meeting on Thursday.

The amnesty program allows corporations and other covered entities to submit their requirements before steeper fees and penalties kick in.

READ: Businesses urged to start ‘fresh’ in amnesty trade-off as filing deadline looms

“[We] have been giving so much leeway but it cannot be forever. One last extension [that is] much shorter,” he added.

New set of fines, penalties

The SEC is expected to implement a new set of fines and penalties for the late and nonfiling of the General Information Sheet (GIS) and Annual Financial Statement (AFS).

Under the proposed rates, domestic stock corporations with retained earnings of not more than P100,000 will incur a basic penalty of P5,000 for the late filing of their GIS or AFS, plus P1,000 for every month of continuing violation. This represents a 900 percent increase from the current rate of P500.

READ: SEC warns delinquent firms of surge in penalties

The same penalty applies to domestic nonstock corporations with a fund balance or equity of not more than P100,000, a 1,900 percent jump from the current penalty of P250.

Meanwhile, nonfiling of GIS or AFS by domestic stock corporations and nonstock corporations with retained earnings and fund balance/equity, respectively, of not more than P100,000 will be slapped with a basic penalty of P10,000, plus P1,000 per month of continuing violation.

The penalty for noncompliance with MC 28 will be set at P20,000, double the current rate of P10,000.

The SEC is also raising awareness for its amnesty program as it also seeks to identify and clear its records of inactive corporations and entities. These awareness efforts include regular advisories to the public on its website and even text blasts using the country’s major mobile networks.

The SEC earlier said there were around 40,000 companies had already filed their amnesty applications, although it was unclear how many entities were still noncompliant. There are over 600,000 active corporations registered with the SEC.