Makati City lifts closure order on Smart | Inquirer News
tax dispute

Makati City lifts closure order on Smart

Pedestrians pass by the headquarters of Smart Communications along Ayala Avenue in Makati City.

TELCO HQ Pedestrians pass by the headquarters of Smart Communications along Ayala Avenue in Makati City. —INQUIRER FILE PHOTO

The Makati City government has lifted the closure order against telco giant Smart Communications Inc. after a compromise deal was reached to address long-standing tax issues.

“This development follows the parties’ execution of a compromise agreement on March 2, 2023, stating the terms of settlement of their pending local taxation issues,” Smart, a subsidiary of PLDT Inc., said in a statement on Friday.


“The settlement was reached after Smart submitted to the local government of Makati its accounting records corresponding to revenues generated within the territorial jurisdiction of Makati for the relevant periods,” it added. Prior to the settlement, Smart said it had filed cases to resolve the tax dispute, which were still pending before the court.


In a brief statement, the local government of Makati confirmed the settlement and warned businesses to “to comply with city ordinances and regulations.”

“We confirm that the closure order issued against Smart Communications Inc. has been lifted following the submission of documents in compliance with an earlier government order and court rulings,” said Michael Camiña, Makati City legal officer.

The Makati City government padlocked the headquarters of Smart’s Ayala Avenue headquarters on Monday for its alleged failure to settle tax deficiencies worth over P3.2 billion from 2012 to 2015.

READ: Makati City padlocks Smart head office over P3.2B in unpaid taxes, lack of business permit

Smart, one of three major mobile phone services providers in the country, said it “remains committed to complying with Makati City’s local tax ordinances, and with relevant national laws, applicable in respect of local taxation, and thanks the [local government] of Makati for its prompt action to resolve the matter.”

“Smart assures the public and its customers that services remain available and accessible to all,” it added.


READ: Smart moves to address tax issues, submits required documents to Makati City gov’t

An examination launched by the Office of the City Treasurer in 2016 concluded that Smart owed the city government over P3.2 billion in franchise tax during the covered period.

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TAGS: Makati City, Smart, Tax

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