The Makati City government lifted the closure order against Smart Communications Inc. after both parties signed a compromise agreement, the company disclosed to the Philippine Stock Exchange Friday.

"This development follows the parties’ execution of a compromise agreement on March 2, 2023 stating the terms of settlement of their pending local taxation issues,'' said Smart Communications in a statement.

"The settlement was reached after Smart submitted to the Makati LGU (local government units) its accounting records corresponding to revenues generated within the territorial jurisdiction of Makati for the relevant periods," it said.

Claro Certeza, Makati City administrator, had said the franchise tax deficiency is P3.2 billion covering the period of January 2012 to December 2015. Eric Acidre/DMS