Makati lifts closure order against Smart after ‘compromise agreement’ over taxes


The City Government of Makati on Friday announced the lifting of the closure order issued against Smart Communications Inc.

Atty. Michael Camiña, Makati City legal officer and spokesman, said that the closure order was lifted after Smart has submitted documents in compliance with an earlier government order and court rulings.

Smart, which is wholly owned by PLDT, said in a statement that the development “follows the parties execution of a ‘compromise agreement’ on March 2, 2023 [Thursday], stating the terms of settlement of their pending local taxation issues.”

“The settlement was reached after Smart submitted to the Makati LGU [local government unit] its accounting records corresponding to revenues generated within the territorial jurisdiction of Makati for the relevant periods,” the statement read.

Camiña added, “Again, we would like to remind all businesses operating in the city to comply with city ordinances and regulations.”

On the other hand, Smart assured that 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,” the telco stressed.

It may be recalled that on February 27, the Makati City government issued a closure order against Smart for its failure to settle over P3.2 billion covering the period of January 2012 to December 2015 and for operating without a business permit since 2019.

In an order of desistance/closure dated February 23, 2023, the city said Smart’s headquarters, located at 6799 Ayala Ave. in Barangay San Lorenzo, allegedly violated Section 4A.01 of the Revised Makati Revenue Code or City Ordinance No. 2004-A-025.

For her part, Makati City Mayor Abigail Binay reminded all businesses in Makati to comply with the laws and obtain the necessary permits before operating in the city.