Makati Shuts Down Smart HQ for Alleged P3.2 Billion Unpaid Taxes
The City of Makati shuts down the head office of Telecommunications giant Smart Communictions for allegedly not paying up to P3.2 billion in taxes and operating without business permit over the last four years.
In an official statement released to the media, Makati City officials said Smart, one of the largest telecom service provider in the country has, to date, "failed to settel or obtain any relief from the courts over its franchise tax deficiency worth over P3.2 billion cover the period January 2012 to December 2015."
They LGU added further that "When businesses in Makati choose to operate without a valid business permity, they are essentially operating outside law" as stated by Makati City administrator Claro Certeza.
The gesture made by Smart is ineed unacceptable as Certeza noted that she want to make it clear that they will not tolerate this kind of behavior, whether they are big or small company.
Based upon the closure order they noted that Smart are hereby commanded to cease and desist from further operating they business establishment until such time compliance with the said ordinance is made.
"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 closure order issued last week and posted at the entrance of Smart's Ayala Avenue headquarters in Makati City.
The orer was a result of the findings of Makati City's Treasurer's Office in 2016, which concluded that Smart owed the city government over P3.2 billion in franchise tax from January 2012 to December 2015.
Meanwhile on their statement to the media, Smart Communications argued that Makati City has no jurisdiction to audit the company's financial statements and operations in other branches nationwide, and added that it had submitted all records related to its operations within the city and paid the necessary taxes.
Based on court records, last 2018 Smart filed a petition for review before the Makati City Regional Trial Court (RTC) seeking to nullify the assessment of the City Treasurer's Office.
However, Makati City government filed a motion for production and inspection of documents, which the court granted. In response, Smart filed an opposition to Makati's motion and challenged the court's decision before the Court of Tax Appeals but in 2022, the CTA denied Smart's petition and affirmed the decision made by the Makati RTC.
After the closure order, Smart released the following statement to the media:
"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."
Watch How Makati Shuts Down Smart HQ:
LOOK: Makati city personnel posts closure order on Smart Communications Inc. main office this Monday for lack of business permit and tax deficiency worth over P3.2 billion.
— ABS-CBN News (@ABSCBNNews) February 27, 2023
Video courtesy: Makati LGU pic.twitter.com/8p7JpOSKJ4
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