EXECUTIVES of Smart Communications Inc. on Tuesday submitted various documents to the Office of City Treasurer of Makati, including the breakdown of revenue sources nationwide, in compliance with an earlier city government order and several court rulings.
The documents were received by City Treasurer Jesusa Cuneta and Atty. Michael Camiña, city legal officer and spokesman.
On Monday, the Makati city government issued a closure order against Smart for its failure to settle over P 3.2 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 Brgy. San Lorenzo, violated Section 4A.01 of the Revised Makati Revenue Code or City Ordinance No. 2004-A-025.
“You are hereby commanded to cease and desist from further operating your business establishment until such time compliance with the said ordinance is made,” read the order, which was implemented on Monday (February 27).
To date, Smart has failed to settle or obtain any relief from the courts over its franchise tax deficiency worth over P 3.2 billion.
“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.
The case stemmed from an examination launched by the Office of the City Treasurer in 2016, which concluded that Smart Communications Inc. owed the city government over P3.2 billion in franchise tax over the four-year period.
Certeza said the city had requested Smart to submit a breakdown of revenues and business taxes paid in all branches nationwide, but the telecommunications giant did not present the documents.