Courts exempt Smart, Piltel from local taxes

THE Court of Appeals has exempted Smart Communications Inc. from paying local franchise taxes.

Considered the country’s leading mobile-phone service provider in terms of subscriber base, Smart said the appellate court’s decision upholds a lower court’s ruling, which would spare the company from having to pay P312 million in back taxes to the Makati City government.

In a notice of resolution dated June 9, the 11th Division of the Court of Appeals deemed the case “abandoned and dismissed” after no petition for review within the period of extension was filed by the city of Makati and its representatives.

Early this year, the Court of Appeals gave the Makati City government a 15-day extension or until March 9 to file a petition for review. However, no petition was filed as of May 30.

The Supreme Court also decided on April 6 to uphold a Court of Appeals decision exempting Smart subsidiary Pilipino Telephone Corp. (Piltel) from having to pay local franchise taxes to the Makati City government on similar grounds.

On August 3, 2004, Branch 61 of the Makati Regional Trial Court declared Smart exempt from paying the local franchise taxes charged by the Makati City Miscellaneous Taxes, Fees and Charges Division worth P196.227 million for calendar years 2000 and 2001, and P115.828 million for 1995, 1998 and 1999, which included surcharges and interests.