Smart HQ in Makati closed down for tax violations, lack of permit

Smart Communications Inc’s headquarters in Makati City has been closed down by the local government unit (LGU) of Makati today for operating without a business permit since 2019 as well as around Php 3.2USD 0.05INR 5EUR 0.05CNY 0.40 billion in unpaid taxes.

Photo from Makati LGU Official Facebook account

In a press release posted on Makati City’s Official Facebook account, it was stated the closure of Smart’s HQ on Ayala Avenue, Barangay San Lorenzo, Makati came from an order dated February from the Makati LGU, for the company’s violation of Section 4A.01 of the Revised Makati Revenue Code.

In addition, it said that an examination launched by the Office of the City Treasurer in 2016 had found that Smart owes Makati City over Php 3.2USD 0.05INR 5EUR 0.05CNY 0.40 billion in unpaid franchise tax. This amount covers the period from January 2012 to December 2015.

In response, Smart has released a statement saying that its “legal and tax teams continue to be in touch with the Makati LGU on the matters at hand” and that it “remains committed to complying with Makati City’s local tax ordinances, and with relevant national laws, applicable in respect of local taxation.”

You can read the full statement below:

We’ll keep an eye on any updates with the telco giant so be sure to stay tuned.