April 5, 2018
SEC EN BANC CASE NO. 04-15-371
Non-filing of AFS during years when a corporation was not operating
CLA-RO MERCHANDISING CORPORATION, petitioner, vs. COMPANY REGISTRATION AND MONITORING DEPARTMENT, respondent.
DECISION
This is an Appeal from the Letter-Order 1 of the COMPANY REGISTRATION AND MONITORING DEPARTMENT (CRMD) dated 7 May 2014, 2 directing CLA-RO MERCHANDISING CORPORATION (CLA-RO) to file its Annual Financial Statements for the years 2006 to 2014, despite the latter's explanation that it had already ceased all business operations since October 2005, otherwise it shall be liable for Fine, viz.:
This refers to your Letter dated 21 April 2014 informing the Commission of [CLA-RO]'s cessation of business since 2006 and that the Commission has been consistently [and yearly] furnished the Affidavit of No Business Operations duly filed with the BIR. x x x
Please be advised that [CLA-RO], despite its non-operation shall still comply with the annual submission of the financial statements within 120 days from end of fiscal year. Corresponding fines shall be assessed upon such non/late filing.
CLA-RO argued that "doing business" is condition sine qua non...
