W.M. Mendis & Company says fully committed to settling liabilities despite challenges

Saturday, 26 October 2024 03:23 - - {{hitsCtrl.values.hits}}

W.M. Mendis & Company Ltd., in a statement says it is fully committed to settling its liabilities despite challenges.

In response to media reports in recent times about the company not settling its VAT liabilities leading to three of its directors being subjected to punishment by court.

In its statement, the company said the VAT liability in question pertains to the period from 2016 to 2019. Of the total liability, approximately Rs. 1.6 billion comprises penalties and interest, while around Rs. 1.0 billion is related to assessments made by the Department of Inland Revenue for amounts not collected from customers.

In response to public concerns suggesting that the company collected VAT from customers but did not remit it, W.M. Mendis said that significant VAT amounts were not collected from customers during this period. Additionally, the outstanding taxes accumulated during a challenging period when the company’s group accounts were frozen by the Central Bank, and the former Chairman Arjun Aloysius was in remand custody for 11 months. Furthermore, the company’s operations were suspended from June 2021 to September 2022, further impacting its ability to generate revenue and meet obligations.

“Despite these challenges, W.M Mendis & Co. remains fully committed to settling its liabilities. The company is dedicated to resolving this matter responsibly and ensuring that all statutory obligations are met. We fully respect the recent court order regarding the VAT liabilities and will continue to cooperate closely with the relevant authorities to bring this matter to a satisfactory conclusion,” the statement by the company added.