Perpetual Treasuries under scrutiny: Profits, tax lapses brought to the attention of Presidential Commission

Perpetual Treasuries under scrutiny: Profits, tax lapses brought to the attention of Presidential Commission

Written by Bella Dalima

21 Jun, 2017 | 8:47 pm

The profits and taxes of Perpetual Treasuries Limited were brought to the attention of the Presidential Commission of Inquiry today.

For the Financial Year, 1st of February 2015 to the 31st of March 2016, Perpetual Treasuries Limited had made a profit of Rs. 5.4 Billion. This represents the highest percentage from the total profits made by all 14 stand alone primary dealers for that period.

This was revealed when the monthly returns of all primary dealers for the respective financial year were produced by the Assistant Director of the Department of Supervision of Non-Banking Financial Institutions at the Central Bank of Sri Lanka.

It further came to light that for the period from 1st of February 2014 to 31st of March 2015, three Primary Dealers, including Perpetual Treasuries Limited had not paid income tax on profits.

However, it was not clear if they were liable to pay those taxes during that period.

In her evidence, the former chief dealer of First Capital Treasuries, Suhini Fernando noted it was the Public Debt Department that called them and told to bid under the prevailing market rates.

She said the company had no keen interest in entering a long term bond and thereby placed a dummy bid.

When questioned on direct placements, she noted that the Front Office of the Public Debt Department gives them a rate to make placements and profits are made after defining a clear margin in the transactions.

Fernando said though her husband served in SMB Money Brokers (Pvt.) Ltd at that time, she never discussed business with him.

This was highlighted because an individual from SMB Money Brokers (Pvt.) Ltd had contacted the chief dealer of the Bank of Ceylon hinting an increase in market rates for February 2015.

 

Latest News

Are you interested in advertising on our website or video channel
Please contact us at [email protected]