SC orders Makati to pay BIR P1.2 billion in taxes

The Supreme Court has ordered the Makati City government to pay the Bureau of Internal Revenue (BIR) P1.2 billion in deficiency taxes plus interest.

The deficiency taxes cover P1.05 billion for the years 1999 to 2001 and P217.8 million for 2002 to 2004.

The Court directed that P701.97 million previously paid by Makati be deducted from its liabilities.

Makati's tax liabilities escalated to billions after the Supreme Court imposed a 20% per annum deficiency interest on the basic deficiency taxes.

Additional liabilities for deficiency interests from 1999 to 2001 and 2002 to 2004 amounted to P2.9 billion and P435.6 million, respectively, calculated until December 31, 2017.

The Supreme Court dismissed the Makati City government's petition and motion to dismiss the case.

Elenita Binay and Jejomar Binay served as Makati's mayor during the periods for which the deficiency taxes were assessed.