The Securities and Exchange Commission (SEC) has extended until the end of the year the deadline for erring companies to settle the fees they have accumulated for the late and non-filing of their reportorial requirements over the years.
The SEC, in a statement, said it has extended the applications for the Enhanced Compliance Incentive Plan (ECIP), which was originally scheduled to end on Nov. 29, to give non-compliant, delinquent, suspended and revoked corporations to avail of lower fines and penalties for the late and non-filing of their reportorial requirements.
ECIP allows non-compliant and delinquent, as well as suspended or revoked corporations, a chance to settle their fines and penalties over failure to submit their annual financial statements (AFS), general information sheet (GIS), and official contact details at significantly lower rates.
Under the ECIP, corporations may submit an application letter on SEC Electronic Filing and Submission Tool (eFAST) platform.
Applicant corporations are required to submit their latest due AFS and GIS by Dec. 31, 2024.
Non-compliant corporations and those placed under the delinquent status may settle their fines and penalties for only P20,000.
Those with suspended and revoked registrations need to pay only 50 percent of their assessed fines and penalties, plus P3,060 to process their petition to lift order of suspension or revocation.
Aside from the AFS and GIS, corporations whose Certificates of Incorporation have been suspended or revoked are required to submit the Petition to Lift Order of Suspension or Revocation, along with other supporting documents such as Directors’ or Trustees’ Certificate, proof of ongoing operations, Secretary’s Certificate of No Intra Corporate Controversy, and MC 28 compliance, among others.
More than 3,200 corporations have already applied and paid the corresponding ECIP fees as of Nov. 28.
Erring companies that will not meet the deadline will be subject higher penalties. The new rates are around 900 percent to 1,900 percent higher compared to the previous rates that had been in place for more than two decades.
