Securities and Exchange Commission increases penalties for non-compliance with reportorial requirements

    

The details of the increase in penalties are still in the process of finalization. However, the information released by the SEC until date in this regard indicates that future non-compliance may cost a company up to 1,900 % more than it is currently the case. 

    

For example, under the proposed penalties increase, domestic stock corporations with retained earnings of not more than 100,000 PHP may incur a basic penalty of 5,000 PHP for the late filing of their GIS or AFS,  plus  1,000 PHP for  every  month  of  continuing  violation – an increase of 900 % from the current rate of 500 PHP. 

   

The same penalty may apply to domestic non-stock corporations with a fund balance or equity of not more than 100,000 PHP, a 1,900 % jump from the current penalty of 250 PHP. The penalty for non-compliance with MC 28 may be doubled from currently 10,000 PHP to 20,000 PHP.