Koop Balitaan via Tulong Balita Online Dec 11, 2020

1. Advisory on Section 4
(www), in Relation to
RA 11494, Otherwise
Known as the
“Bayanihan to Recover
as One Act”
MC 2020-27

2. MC 2020-27 - Legal Basis
In compliance with Section 4 (www) of Republic Act No. 11494,
otherwise known as the Bayanihan to Recover as One Act, with
reference to Section 4 (tt) of the same Act, to state:
“SEC. 4. COVID-19 Response and Recovery Interventions. – Pursuant to
Article VI, Section 23 (2)of the Constitution, the President is hereby
authorized to exercise powers that are necessary and proper to
undertake and implement the following COVID-19 response and
recovery interventions:

3. MC 2020-27 - Legal Basis
“(www) Provision of regulatory relief during the effectivity of this Act
for business entities by directing the SEC and other regulatory agencies
to desist from imposing fines and other monetary penalties for non-
filing, late filing, failure to comply with compulsory notification and
other reportorial requirements relating to business activities and
transactions that promote continuity and capacity-building in all
sectors of the economy during the CQ:”

4. MC 2020-27 - Legal Basis
“(tt) Moving of statutory deadlines and timeliness for the filing and
submission of any document, the payment of taxes, fees, and other
charges required by law, and the grant of any benefit, in order to ease
the burden by law, and the grant of any benefit , in order to ease the
burden on individuals under CQ:”

5. MC 2020-27 – Non-imposition of Penalty
The Authority shall not impose fines and other monetary penalties for
non-filing, late filing, failure to comply with compulsory notification and
other reportorial requirements during the community quarantine.
Hence, cooperatives who have not yet submitted the required reports
for CY 2019 are encouraged to submit the complete set of required
reports on or before December 31, 2020.
What is period covered of the MC for the non-imposition of penalties?
• Starts from September 15, 2020

6. Non-imposition of Penalty - Illustration
Example #1, ABC Cooperative submitted its CY 2019 complete required
reports on November 15, 2020. How much is the penalty?
• There will be a PhP100.00 per day from August 4, 2020 to September 14,
2020.
• 42 days X PhP100 = PhP4,200
Example #2, XYZ Cooperative submitted its CY 2019 complete mandatory
reports on November 15, 2020 and has an outstanding balance of penalty for
previous years amounting to PhP 30,000. How much will be the total penalty
of XYZ Cooperative?
• For CY 2019, 42 days X PhP100 = PhP4,200
• For previous years, retain the PhP30,000 penalty
• Total penalty will be PhP34,200

7. MC 2020-27 – Payment of Penalties
Furthermore, for cooperatives issued with Notice/Show Cause Order
for non-submission of required reports, there will be a moratorium on
the payment of penalties incurred during the previous years as well as
from August 4, 2020 to September 14, 2020, prior to the passage of
law. Upon lifting of the community quarantine, payment of penalties
shall be made on installment basis, subject to the complete submission
of those reports which were not submitted during the previous year(s),
as follows: AMOUNT OF PENALTY INSTALLMENT PERIOD
Less than 20,000 One (1) year
20,001 to 50,000 Two(2) years
50,001 to 100,000 Three (3) years
100,001 to 200,000 Four (4) years
Over 200,000 Five (5) years

8. Payment of Penalties - Illustration
The same with the previous illustrations. Additional scenario is that the
community quarantine was lifted on October 2, 2021.
Example #1, ABC Cooperative with a total penalty of PhP4,200.
• Being less than 20,000, the cooperative may opt to pay it within one
year starting October 2, 2021 with the last payment on or before
October 1, 2022.
Example #2, XYZ Cooperative with a total penalty of PhP34,200.
• Being more than 20,000 and less than 50,001, the cooperative my opt
to pay within 2 years starting from October 2, 2021 with the last
payment be made on or before October 1, 2023.

9. MC 2020-27 – Issuance of COC
Certificates of Compliance shall be issued upon receipt of the complete set
of required reports, as stipulated under Memorandum Circular Nos. 2016-07,
2019-04 and 2020-06.
All concerned CDA Regional Offices must endeavor to inform and
disseminate this Circular to cooperatives within their jurisdiction.
This Circular shall take effect immediately.
Approved per BOD Resolution No. 328, S-2020 dated November 5, 2020.
Issued this 19th day of November 2020.