Businessman fined for VAT evasion

A businessman from Udubaddawa, Pallewela, was fined Rs. 30,000 today by Colombo Additional Magistrate Oshada Migara Maharachchi after pleading guilty to charges of failing to remit VAT to the government, issuing invoices without business registration, and failing to use a TIN.

The magistrate imposed a fine of Rs. 10,000 for each of the three charges brought by the Commissioner General of Inland Revenue.

This decision followed the defendant's guilty plea and the settlement of Rs. 37 million in outstanding VAT arrears.

The Inland Revenue Department filed the case covering offenses committed between September 20, 2024, and September 08, 2025.

The specific charges included failing to register under the Value Added Tax Act, issuing tax invoices that only registered individuals can issue, and providing buyers with invoices containing a fraudulent TIN.

The defendant admitted guilt and settled the Rs. 37 million in taxes after the Inland Revenue Department initiated its investigation, lawyer Dinesh Perera stated while representing the Commissioner of Inland Revenue.

The defense submitted that the individual operated the business without proper knowledge regarding VAT regulations.

The magistrate ordered the release of the defendant after payment of the fines, following a review of the presented facts.