The report says, “A private investigations body which has unearthed such details against the company registered as IFS Sri Lanka, has exposed how the Swedish software giant had defrauded the Sri Lankan government by evading the payment of taxes for nearly US$70 million (approximately Rs.8.8 billion) for 15 years of its operations in Sri Lanka.”
The report adds that the investigations body, which is conducting a probe into unethical business practices by foreign companies operating in Sri Lanka, revealed that IFS Sri Lanka had manipulated the financial statements and the accounting books for several years by duping the Inland Revenue Department by showing continuous losses.
“The probe has also shed light to the involvement of reputed financial auditing firm - PricewaterhouseCoopers (PwC) which has been annually conducting the independent audit. The findings have revealed that PwC has been ignoring the blatant financial discrepancies that had been indicated in the IFS records. The findings have also disclosed details of IFS Sri Lanka, which is a subsidiary of the IFS Group in Sweden being involved in illegally repatriating money out of the country. The investigators have learnt that some of the money received and sent out of the country has not been accounted for with most of the money being used for several projects that are currently being conducted using proxies. It is learnt that some of these proxies are companies that have been recently registered by current high-ranking officials of IFS Sri Lanka,” an extract from the story posted on its website stated.
When The Nation contacted IFS Sri Lanka for a comment on the veracity of the claim, it’s Marketing Executive Shaloma John whilst totally refuting the report as false said, “We have passed Haveeru’s article on to the senior officials in the management at both IFS and PwC and a specific response on what action we will pursue will be forthcoming once we study it fully,” she said. (AR)
- See more at: http://www.nation.lk/edition/news-online/item/18900-ifs-involved-in-rs9bn-tax-scam-report.html#sthash.IQhob1Hg.dpuf