Law Summary
Grounds for Cancellation of Registration
- Delay of project timetable by one year without reinstatement by the Board.
- Withdrawal from business or cessation of operations.
- Suspension of business operations exceeding one year or the period allowed by the Board.
- Voluntary surrender of certificate of registration only after five years from last year of Income Tax Holiday (ITH) availment.
- Failure to maintain qualifications required for registration under the Code.
- Violation of any provision of the Omnibus Investment Code.
- Violation of Implementing Rules and Regulations or any terms and conditions of registration.
- Violation of laws protecting labor or consumers.
- Misrepresentation or false statements in documents submitted to the Board.
- Acts or omissions in violation of laws, decrees, executive orders, or regulations the Board is tasked to enforce or implement.
Restoration and Reinstatement
- The Board holds discretion to reinstate enterprises delayed in their project execution within the one-year period.
Conditions on Voluntary Surrender
- Surrender of registration certificate to be entertained only after five (5) years from the last year an enterprise enjoyed ITH benefits.
Effective Date of the Circular
- The amendment circular takes effect fifteen (15) days after publication in a newspaper of general circulation.
Legal Implications for Violations
- Cancellation serves as sanction for non-compliance, misrepresentation, or violations affecting labor, consumer protection, or adherence to the Code and relevant regulations.
Authority and Enforcement
- Enforced and administered by the Board of Investments which has the authority to cancel registrations based on specified grounds and to reinstate qualified enterprises.
Documentation and Submission Requirements
- Registered enterprises are obliged to submit truthful and accurate documents; misstatements are grounds for cancellation.
Suspension and Cessation Provisions
- Suspension or cessation beyond prescribed periods triggers cancellation proceedings to maintain compliance integrity of registered businesses.