Outstanding tax dues: Planters Association responds

During the last fortnight there has been a spate of articles in the print media attributed to the Minister of Plantation Industries stating that the Regional Plantation Companies (RPCs) have not paid their taxes and stern action is contemplated against these companies for the recovery of same having obtained advice from the Attorney General. Various methodologies ranging from recoveries being made through the Tea Board, Brokers, etc have been suggested.
The RPCs are all public listed companies who to the best of our knowledge have paid taxes due to the government and have not defaulted or evaded taxes as claimed by the Hon Minister.
The issue at hand is the payment of Lease Rentals due to the government which ran into arrears based on a decision taken by the former Secretary to the Treasury, where compensation receivable by the RPCs on lands acquired by the govt for public purposes could be set off against Lease Rentals. This decision was retracted several years later resulting in an accumulation of Lease Rentals payable to the government.
Considering that there is provision clearly incorporated in the Lease Agreements entered into between the government and the RPCs for the recovery of outstanding Lease Rentals, there is no necessity whatsoever to devise a system of recovery at this juncture. The Secretary, Ministry of Plantation Industries has given the RPCs a deadline up to 30th June 2009 to make good these payments and the majority of privatised RPCs have complied, while the few who are unable to do so in full, due to financial constraints, have made initial payments and proposed a short term repayment schedule which is to be discussed shortly.
Considering the adverse impression cast on the RPCs by stating that they have not paid their taxes, particularly in the minds of the shareholders and the general public, we trust that you will give this statement equal publicity in your newspaper.

Malin Goonetileke
Secretary General
The Planters’ Association of Ceylon