Filtered By: Money

PLDT: Makati LGU lifts closure order vs. Smart

PLDT Inc. on Friday said Makati City has lifted the closure order against its mobile telecommunications arm Smart Communications Inc. after the two parties entered into a compromise deal.

In a disclosure to the Philippine Stock Exchange, PLDT said the Makati City government issued an order dated March 2 lifting the February 27 closure order against Smart —which has its headquarters in the city.

On Monday, the Makati City LGU shut down Smart’s headquarters in Barangay San Lorenzo on Ayala Avenue for allegedly violating Section 4A.01 of the Revised Makati Revenue Code or City Ordinance No. 2004-A-025 as it failed to settle its P3.2-billion franchise tax deficiency from January 2012 to December 2015 and for reportedly operating without a business permit since 2019.

On March 1, Smart said it has already submitted the documents requested by the Makati City government.

The LGU requested Smart to submit a breakdown of revenues and business taxes paid in all branches across the country, but the firm reportedly refused.

In its regulatory filing to the PSE, PLDT said Smart and the Makati LGU executed a compromise agreement on March 2, 2023 “stating the terms of settlement of their pending local taxation issues.”

“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,” PLDT said.

“Smart 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 said.

Sought for comment, Atty. Michael Camiña, Makati City legal officer and spokesperson, confirmed to GMA News Online the lifting of the closure order.

"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.  Again, we would like to remind all businesses operating in the city to comply with city ordinances and regulations," he said.—AOL, GMA Integrated News