For our established institutions we pay 10% turnover tax and 40% corporate tax and an annual levy of LKR 200 Million Rupees. From our net profit 75% is paid to the government whilst 25% is retained by the institution. The above taxes have always been paid in a timely manner upto date. The tax that has been spoken about by the Sunday Times is a one off tax applied to the industry. The industry came into an agreement to pay this tax over a specified period of time. After paying LKR 425 Million to the IRD without informing us the IRD filed a case against the Directors for the residual sum and released the information to the media. The case is still ongoing but the institution has settled the matter and paid a full and final sum of LKR 575 Million. We reiterate that all taxes in every form has been paid and is upto date.
Management Ballys Limited
