It’s a shocking way to start of the week, as the City of Makati has issued a closure order to the main office of Smart in Ayala Avenue for allegedly operating without a business permit since 2019 and for supposedly failing to pay Php 3.2 billion in franchise taxes from January 2012 to December 2015.
The City of Makati released photos of Smart’s office, located at 6799 Ayala Avenue, padlocked and with a closure order posted on its entrance door.
“When businesses in Makati choose to operate without a valid business permit, they are essentially operating outside the law. This is unacceptable, and I want to make it clear that we will not tolerate this kind of behavior, whether you are a big or small company,” Makati City Administrator Claro Certeza said.
Smart’s case stems from an examination probe done by the Office of the City Treasurer back in 2016, which it concluded that Smart owes the Makati LGU over Php 3.2 billion in franchise tax over the four-year period. Smart filed a petition for review in 2018 at Makati Regional Trial Court Branch 133, and later on filed on May 31, 2019, a comment/opposition against Makati’s motion, challenging the decision made by the Court of Tax Appeals (CTA).
Smart remains committed to complying with Makati City’s local tax ordinances, and with relevant national laws, applicable in respect of local taxation.
Smart has filed the appropriate cases to resolve outstanding legal issues; these cases remain pending. Our legal and tax teams continue to be in touch with the Makati LGU on the matters at hand.
We assure the public that our services will remain available and accessible to our subscribers.
