The Securities and Exchange Commission (SEC) said over the weekend it would raise the basic penalties for late and non-filing of reports in October 2023.
It said in a statement it would release a new scale of fines and penalties for the late and non-filing reportorial requirements once the amnesty program ended by Sept. 30, 2023.
Registered firms are required to submit general information sheet (GIS) and annual financial statement (AFS) annually under the Revised Corporation Code.
Under the proposed rates, domestic stock corporations with retained earnings of not more than P100,000 would incur basic penalty of P5,000 for the late filing of GIS or AFS, plus P1,000 for every month of continuing violation.
“With the stricter penalties, we hope corporations will be more mindful of submitting their annual reports on time, as these are vital in ensuring the efficient functioning of the Philippine corporate sector,” SEC chairperson Emilio Aquino said.
Aquino said companies’ faithful compliance with the filing of reportorial requirements allows the SEC to manage its corporate database better, purge inactive corporations and protect the public from fraudulent entities.
