Philippine Social Science Council, Inc.

February 7, 1983 Philippine Social Science Council, Inc. House No. 7, Purok Heneral Aguinaldo U.P. Diliman, Quezon City Attention : Mr . Placido G . Lazaro Gentlemen: This refers to your letter dated January 11, 1983, inquiring as to whether the Philippine Social Science Council, Inc. is covered by the recently approved amendment to the SEC Rules Prescribing the Penalties for Non-filing or Late Filing of Annual Financial Statements By Fixing Extended/Longer Periods From the End of Fiscal Year of Corporations considering that the corporation is a tax-exempt donee institution under BIR-NEDA Reg. No. 1-81 implementing B.P. No. 45 . cdlex Please be informed that under SEC rules, non-stock corporations are required to submit financial statements to the Commission. The Rules Requiring Non-Stock Corporations to keep Accounting Records and to Submit Annual Financial Statements provides, thus: "In order to enable the Securities and Exchange Commission to closely supervise and properly monitor the operations and activities of non-stock corporations for the purpose of protecting the membership participation therein as well as the interest of the public in general, all non-stock corporations , duly registered with the Commission are hereby required to keep proper accounting records and to prepare and submit to the Commission their annual financial statements, consisting of a balance sheet and income statement in accordance with the following provisions: 1. The annual financial statements of non-stock corporations must be submitted to the Commission within 105 days after the end of their fiscal year. However, under meritorious cases and provided a written request is made, within the above prescribed period, an extension of thirty (30) days may be granted by the Commission for the submission of said financial statements. . . ." (emphasis supplied) It is very clear from the aforecited provision that all non-stock corporations registered with the Commission regardless of whether they are tax-exempt or not are required to file financial statements to this Office. Considering that in the amendment there is no distinction between stock and non-stock corporation, the same applies to both. In view thereof, it is advised that subject corporation observes the period within which to file its financial statements as provided for in the amendment. The amended Rule provides, thus: "xxx xxx xxx III. The deadlines for the filing with the Commission of the annual financial statements by corporations are as follows: A. For corporations whose securities not registered under the Revised Securities Act one hundred twenty (120) days from the end of the fiscal year of the corporation. . . . (emphasis supplied). cdlex Please be guided accordingly. Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner