The case stemmed from an examination launched by the Office of the City Treasurer in 2016, which concluded that Smart 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 refused to present the documents. In 2018, Smart filed a petition for review before a Makati Regional Trial Court seeking to nullify of the Office of City Treasurer’s Notice of Assessment, which states that the telecommunications giant did not pay the franchise tax.
During the trial, Makati City filed a motion for production and inspection of documents, which the court granted. However, in 2019, Smart filed an opposition against Makati’s motion and challenged the court’s decision before the Court of Tax Appeals .Smart argued that the city has no jurisdiction to audit the company’s financial statements and operations in other branches nationwide, adding that it had submitted all records related to its operations within the city and paid the necessary taxes.
The CTA, however, said Makati has the authority to investigate Smart’s entire operations under the Local Government Code.Subscribe to our daily newsletter
PLDT executives are doing a disservice to its stockholders
So you also need to padlock Malacanan Palace kasi may billions of pesos worth of unpaid taxes yung nakatira dun? 😂😂😂
Magkano ba threshold for unpaid taxes para di na singilin? 5 billion?