Court orders Arjuna Aloysius to immediately settle unpaid VAT

W. M. Mendis & Co. directors must settle their outstanding Value Added Tax (VAT) payments as previously ordered, according to the Colombo Magistrate's Court.

Additional Magistrate Oshada Migara Maharachchi issued this directive to the board of directors, rejecting a request from the company for relief regarding the payment schedule.

The order came during a case filed by the Commissioner General of Inland Revenue to recover Rs. 996 million in unpaid taxes for the 2016-2017 period.

Defendant Arjun Aloysius, a director of the company, appeared in court for the proceedings.

Counsel representing the defendant informed the court that the Excise Department suspended the company's liquor production licenses. Furthermore, the defence highlighted that banks are preparing to auction the company’s distilleries, leading to significant financial difficulties in meeting tax instalments.

Given these circumstances, the lawyer requested a revision to the current payment terms.

In response, attorney Dinesh Perera, appearing for the Inland Revenue Department, noted that five separate cases exist against the board members for tax default.

He reminded the court that directors previously received prison sentences in one case for failing to settle arrears.

Consequently, the prosecution urged the court to maintain the existing payment orders.

After considering the facts, the Additional Magistrate ruled that because the deadline for payment had already passed, the company must take immediate steps to pay the taxes as ordered.

The court called for a progress report on the payments by May 25.