EXECUTIVE ORDER NO. 326 April 17, 1996
PROVIDING FOR THE SUSPENSION OF THE REQUIREMENTS OF EXECUTIVE ORDER NO. 10 WHICH MANDATES ALL GOVERNMENT FINANCIAL INSTITUTIONS TO USE INCOME TAX RETURNS AND FINANCIAL STATEMENTS DULY FILED WITH, AND CERTIFIED BY THE BUREAU OF INTERNAL REVENUE IN EVALUATING THE BORROWER'S CAPACITY TO PAY, PROVIDED THAT THIS SUSPENSION SHALL ONLY BE APPLICABLE TO MICRO, COTTAGE AND SMALL ENTERPRISES
WHEREAS, in consonance with Presidential Proclamation No. 595, declaring 1996 as the Small Enterprises Development Year;
WHEREAS, as embodied in Republic Act 6977, otherwise known as the Magna Carta for Small Enterprises, it is the policy of the State to promote, support, strengthen and encourage the growth and development of small and medium enterprises in all productive sectors of the economy towards countryside industrialization;
WHEREAS, cognizant of the fact that the most rapid way of advancing the commercial and economic interests of the micro, cottage and small enterprises, as defined by the Small and Medium Enterprises Development Council, is by providing them access to available financing facilities of...
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Executive Orders
Providing for the suspension of the requirements of Executive Order No. 10 which mandates all government financial institutions to use income tax returns and financial statements duly filed with, and certified by the bureau of internal revenue in evaluating the borrower's capacity to pay, provided that this suspension shall only be applicable to micro, cottage and small enterprises
Executive Order No. 326
Summary of Executive Order No. 326
Purpose: Suspension of Requirements for Micro, Cottage and Small Enterprises
- Suspends the requirements of Executive Order No. 10, which mandates all government financial institutions to use income tax returns and financial statements certified by the Bureau of Internal Revenue in evaluating a borrower's capacity to pay.
Coverage:
- This suspension shall only apply to micro, cottage and small enterprises, as defined by the Small and Medium Enterprises Development Council (SMED Council). (Section a)
- These enterprises can avail of the benefit only once. (Section b)
Duration:
- The suspension shall be in effect for a period of five (5) years from the date of the Executive Order. (Section c)
Conditions:
- The suspension shall be consistent and run parallel to the Comprehensive Tax Reform Program of the Government. (Section d)
- The government financing institutions, in their lending programs, shall educate these enterprises in the preparation of financial statements and income tax returns, and require them to file with the Bureau of Internal Revenue.
Legal Basis:
- Presidential Proclamation No. 595, declaring 1996 as the Small Enterprises Development Year.
- Republic Act 6977, known as the Magna Carta for Small Enterprises, which promotes the growth and development of small and medium enterprises.
- The Constitution, which vests the President with the powers to issue executive orders.
Purpose: Suspension of Requirements for Micro, Cottage and Small Enterprises
- Suspends the requirements of Executive Order No. 10, which mandates all government financial institutions to use income tax returns and financial statements certified by the Bureau of Internal Revenue in evaluating a borrower's capacity to pay.
Coverage:
- This suspension shall only apply to micro, cottage and small enterprises, as defined by the Small and Medium Enterprises Development Council (SMED Council). (Section a)
- These enterprises can avail of the benefit only once. (Section b)
Duration:
- The suspension shall be in effect for a period of five (5) years from the date of the Executive Order. (Section c)
Conditions:
- The suspension shall be consistent and run parallel to the Comprehensive Tax Reform Program of the Government. (Section d)
- The government financing institutions, in their lending programs, shall educate these enterprises in the preparation of financial statements and income tax returns, and require them to file with the Bureau of Internal Revenue.
Legal Basis:
- Presidential Proclamation No. 595, declaring 1996 as the Small Enterprises Development Year.
- Republic Act 6977, known as the Magna Carta for Small Enterprises, which promotes the growth and development of small and medium enterprises.
- The Constitution, which vests the President with the powers to issue executive orders.