Umayos ka! Makati LGU shuts down Smart’s main office over unpaid taxes

The Makati City government has closed down the headquarters of Smart Communications Inc, the mobile unit of telco giant PLDT, for allegedly operating without a business permit since 2019 and for failing to pay a franchise tax deficiency of over P3.2 billion.

(Video courtesy of Makati City government)

The local government unit (LGU) of Makati accused Smart of failing to obtain relief from courts over the unpaid franchise tax covering January 2012 to December 2015.

Photos of the closed Smart office located at 6799 Ayala Ave. in Brgy. San Lorenzo were released by the LGU on Monday, along with a statement about the closure order.

“You are hereby commanded to cease and desist from further operating your business establishment until such time compliance with the said ordinance is made,” the order read.

Makati City administrator Claro Certeza stressed that the city would not tolerate businesses that operate without valid permits, regardless of their size.

According to the LGU, Smart’s headquarters violated the Revised Makati Revenue Code, noting that the company was ordered to submit a breakdown of revenues and business taxes paid in all branches nationwide, but it allegedly refused to present the documents.

Smart filed a petition for review in 2018, seeking to nullify the Office of City Treasurer’s notice of assessment, which stated that the company did not pay the franchise tax.

It argued that the city has no jurisdiction to audit the company’s financial statements and operations in other branches nationwide. It also stressed that it had submitted all records related to its operations within the city and paid the necessary taxes.

However, the court denied Smart’s petition in 2022, the LGU said.

Smart has yet to elevate the case to the Supreme Court.

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