SMART Communications, Inc. (Smart) on Friday said that the Makati City Local Government Unit (LGU) has lifted the closure order that it issued on their headquarters in Makati City.

On Monday, February 27, the Makati LGU closed the main office of Smart, over its alleged failure to settle or obtain any relief from the courts over its franchise tax deficiency worth over P3.2 billion covering the period January 2012 to December 2015.

According to the telco company, both parties 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,” the Smart statement said.

According to Smart, they remain 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 then assured the public and its customers that services remain available and accessible to all.

Earlier, the Makati city government received executives from Smart Communications who submitted various documents to the Office of City Treasurer, including the breakdown of revenue sources nationwide, in compliance with an earlier city government order and several court rulings.

Smart is a wholly-owned subsidiary of PLDT Inc. to which they explained that the submission of the documents is part of ongoing discussions between Smart and the Makati City LGU who both aim to arrive at a resolution to the matter at hand.

“Smart remains committed to complying with Makati City’s local tax ordinances, and with relevant national laws, applicable in respect of local taxation,” they said.

On Monday, the Makati LGU closed the main office of Smart, saying it is for allegedly operating without a business permit since 2019.

“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,” Smart said.

Catherine R. Cueto