Lawyers appearing for defendant director Arjuna Aloysius have informed the court that financial difficulties have prevented the payment of outstanding tax instalments, after the liquor permit of W.M. Mendis and Company was suspended by the Department of Excise, and its distillery has been referred for auction by banks.
This was revealed when a case filed by the Commissioner General of the Inland Revenue Department (IRD) to recover unpaid taxes amounting to Rs. 996 million, allegedly defaulted by the company for the years 2016 and 2017, was taken up yesterday (April 23).
The defence counsel requested the court to revise the monthly instalment of Rs. 05 million, which has been paid since February 2023, and to grant a relief to settle the outstanding tax dues.
Presenting facts on behalf of the Commissioner General of IRD, Attorney-at-Law Dinesh Perera informed the court that 05 cases have been filed against the directors of the defendant company to recover unpaid taxes.
He further stated that in one such case, prison sentences had been imposed on the company’s directors due to default in tax payments, while another case is scheduled to be taken up on June 25, 2026.
He also noted that a separate case related to non-payment of taxes for the years 2019 and 2020 is currently being heard before the Court of Appeal.
Accordingly, Counsel Dinesh Perera requested the court to order the directors of the defendant company to settle the outstanding tax payments as required.
After considering the submissions, Colombo Additional Magistrate Oshadha Migara Mahaarachchi rejected the request made by the defence seeking relief on the tax instalments.
The Magistrate noted that the company has already exceeded the stipulated timeframe for payment and ordered the directors to immediately settle the defaulted tax dues.
The Magistrate also directed the Commissioner General of IRD to report progress on the investigations related to the case on May 25.
Meanwhile, Defendant director Arjuna Aloysius appeared before the court when the case was taken up.
📌Related News:
https://srilankamirror.com/biz/w-m-mendis-liquor-manufacturing-license-to-be-suspended/
https://srilankamirror.com/news/production-limit-imposed-on-w-m-mendis-welisara-distillery/
https://srilankamirror.com/news/3-including-aloysius-denied-bail-again/
https://srilankamirror.com/news/3-including-arjun-aloysius-sentenced-over-vat-evasion/
