Photo by LYN RILLON
MANILA, Philippines—The Makati City government lifted the shutdown order on 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 (March 3).
“The settlement was reached after Smart submitted to the Makati LGU its accounting records corresponding to revenues generated within the territorial jurisdiction of Makati for the relevant periods,” it said.
The Makati City government padlocked the headquarters of Smart’s Ayala Avenue headquarters on Monday (Feb. 27) for its alleged failure to settle tax deficiencies worth more than P3.2 billion from 2012 to 2015.
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 Makati LGU 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.
TSB