October 14, Colombo (LNW): The Colombo Magistrate’s Court has handed down a six-month prison sentence to Arjun Aloysius, Director of W.M. Mendis Distilleries, along with two other executives, for their failure to settle Rs. 3.5 billion in unpaid Value Added Tax (VAT).
The Inland Revenue Department (IRD) had filed the case against the company for defaulting on tax payments owed to the government from 2016 to 2019.
The case, which was heard before Colombo Additional Magistrate Bandara Ilangasinghe, saw the court impose the sentence following the company’s repeated failure to comply with a previous order to pay the outstanding amount.
In November 2023, the court had directed the accused to clear the dues, yet the required payments were not completed.
With the company failing to adhere to legal directives, the court’s ruling is expected to set a precedent for other corporations with outstanding financial obligations to the state.
This case has drawn significant attention due to the high-profile nature of the individuals involved, particularly Aloysius, who has faced scrutiny in the past for his involvement in other high-stakes financial matters.
