TELCO HQ Pedestrians pass by the headquarters of Smart Communications along Ayala Avenue in Makati City. 鈥擨NQUIRER 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.
鈥淭his development follows the parties鈥� execution of a compromise agreement on March 2, 2023, stating the terms of settlement of their pending local taxation issues,鈥� Smart, a subsidiary of PLDT Inc., said in a statement on Friday.
鈥淭he 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,鈥� 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 鈥渢o comply with city ordinances and regulations.鈥�
鈥淲e 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,鈥� said Michael Cami帽a, Makati City legal officer.
The Makati City government padlocked the headquarters of Smart鈥檚 Ayala Avenue headquarters on Monday for its alleged failure to settle tax deficiencies worth over P3.2 billion from 2012 to 2015.
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Smart, one of three major mobile phone services providers in the country, said it 鈥渞emains committed to complying with Makati City鈥檚 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.鈥�
鈥淪mart assures the public and its customers that services remain available and accessible to all,鈥� it added.
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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.