Perpetual Treasuries, two other primary dealers evade tax on bond profits;CBSL Additional Director:
Posted on June 23rd, 2017

By Shyam Nuwan Ganewatte and Sarath Dharmasena Courtesy The Island

Additional Director of Supervisory Department of the Non Banking Financial Institutions of the Central Bank, Suresh Sedera, testifying before the Presidential Commission probing alleged bond scams yesterday revealed that three primary dealers had not paid taxes on profits from bond transactions during the 2015/16 financial year.

Sedera told the Commission that according to the audit statements, Perpetual Treasuries, Netwealth Securities and First Capital for 2015-2016 had not paid taxes after making profits though there had been provision for tax payment.

Sdera said so after submitting the financial statements of those companies to the Commission.

Pointing out that the net profit Perpetual Treasuries had made from bond transactions amounted to Rs.5.4 billion, Sedera said that among the three companies, Netwealth Securities had incurred losses and the NSB Fund Management company had paid taxes.

Although Netwealth Securities had made allocations it had not paid taxes, he said.

When the Counsel appearing for Perpetual Treasuries Nihal Fernando was allowed to cross-examine Sedera, Additional Solicitor General Milinda Gunatillake raised objections, saying that the counsel was asking unnecessary questions. That led to a heated argument between the Defence Counsel and the Additional Solicitor General.

The Commission will resume sittings today at 9.45 a.m.

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