The Colombo Magistrate's Court has denied a bail request from Arjun Aloysius, the Director of W.M. Mendis Distilleries, and two co-defendants who were sentenced to six months in prison for Value Added Tax (VAT) evasion on Monday (October14). The appeal was made by President's Counsel Razik Zarook, who argued that the trial had transitioned into a criminal case.
However, Colombo Additional Magistrate Bandara Ilangasinghe ruled against the bail application, emphasizing that the case was filed based on a certification from the Inland Revenue Department (IRD). The magistrate clarified that the prison sentence serves as an alternative punishment and does not alter the case's classification.
The IRD filed the case against W.M. Mendis Distilleries for failing to pay Rs. 3.5 billion in VAT owed to the government between 2016 and 2019. The court’s ruling means that the three defendants must serve their sentences as they continue to face charges related to the tax default.
