MANILA - The city of Makati, the Philippines' financial center, has settled its P900-million debt to the Bureau of Internal Revenue, a local official confirmed Sunday.
The two parties reached an amicable settlement after BIR Commissioner Cesar Dulay granted Makati Mayor Abby Binay's request for waiving surcharges and interest, city legal officer Atty. Don Camiña told radio DZMM.
Makati incurred the debt after failing to remit withholding taxes from 1999 and 2004.
Between 2005 and 2011, city officials paid off P600 million of the total P900-million debt.
The local government settled the remaining P300-million balance after Dulay waived penalties for the unremitted taxes.
A case connected to the debt is pending before the Supreme Court.
Makati officials and the BIR are set to file a joint motion seeking the dismissal of the case.
-- Report from Zhander Cayabyab, DZMM